The Governor and the legislature are circling uncomfortably around the issue of how much to cut the present fiscal year’s budget and whether or not the cuts must affect local aid. Next year’s budget is also looking grim
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The Governor and the legislature are circling uncomfortably around the issue of how much to cut the present fiscal year’s budget and whether or not the cuts must affect local aid. Next year’s budget is also looking grim Senate budget draft cuts local aid * 2 commentsThe just-released Senate budget draft is based on tax revenue estimates of $18.0 billion, down over $1.5 billion from the estimates used by the Governor and the House budgeteers. As a result, it includes cuts in local aid and other key programs. March 12, 2009, the House voted to match the local aid levels proposed in the Governor’s budget — relatively substantial overall increases in Chapter 70 and a protection of municipalities from a shortfall in the lottery fund. The answer appears to be Yes in the sense that we face needs that considerably exceed revenue as we prepare the 2009 budget and look out over the next few years. What is state’s longer term fiscal outlook? * 1 commentAlthough specific quantities are hard to predict even one year out, and the uncertainties multiply as one looks further, it seems fair to say that the state cannot meet any of its presently well-identified major unmet needs without making big changes — either in spending priorities or in broad-based tax revenues. According to most commentators, across the spectrum, the FY2009 budget is tighter than in most years. State revenue projections for 2008 * 1 commentComments on revenue reports. |