Budget Highlights
Below you will find highlights of the budget for your review which have been prepared by Rep. Kurk, Rep. Ober, and Rep. Weyler. It was announced today that the budget will be supported by the House Republican Office.
Budget Highlights
The committee of conference report on HB 1 (the budget bill) and HB 2 (the trailer bill) is one that fiscal conservatives can support. Largely following the Senate versions of the two bills, the budget is balanced using reasonable revenue estimates without new or increased taxes or fees. Compared to the current biennial budget, it represents a 2.8% increase in general fund spending.
Key Provisions
Four business tax reductions passed in the 2011-12 session but delayed in the House budget will take effect as planned.
There will be no increase is the gas or cigarette taxes.
There will be no Medicaid expansion in the budget. A study commission will present a report by October 15th. Future legislative action is required if the state is to participate in expanded Medicaid.
Charter school funding for current schools, approved schools and new schools is in the budget.
Additional funding was provided for the Veterans Home to cover past unpaid utility bills and continue to provide a high level of care.
Adequate education aid for 58 cities and towns has been increased by raising the so-called “cap” on the maximum increase in state aid from 105.5% to 108%.
Increases in the Salt Water Fishing license fee and Marriage License fee were removed.
A provision allowing for the Governor to raid dedicated funds was deleted.
The School Choice Tax Credit program passed last year will remain in effect.
A reporting date was extended for an existing commission to study and report on the regulatory environment for expanded gambling.
The state will pick up more of the counties’ costs for poor residents’ long-term care than had been proposed in the House budget, thereby helping the county tax payer.
A loan and repayable grant was made to help the North Country’s Tri-County Community Action Program out of its current financial crisis and allow it to continue to provide services to its thousands of clients.
The budget funds $16.9 million in general funds and $37 million in total funds for four labor contracts providing for a 6.2% cost-of-living increase for state employees, their first in several years. The cost of these contracts was not known to House or Senate finance committees during the budget process. It was first presented to the conference committee by the Governor’s labor negotiator. The funds to cover the cost came from unexpected revenues received in the current fiscal year from existing taxes.
There are two major “back-of-the-budget” cuts in personnel: one is for $7 million in general funds at HHS; the other is for $10 million in general funds and $25 million in overall funds from all Executive branch agencies.
