BLOG : Connecticut, Indiana, Kansas, Nebraska
Weekly State Budget Update
As the end of this fiscal year approaches, states lawmakers are gradually making compromises and solving their budget issues.
Connecticut recently approved a budget that tackles its deficit with the largest tax increase in the state’s history. Connecticut legislature passes a two-year budget at $40.1 billion that assumed $1 billion in concessions each year. Malloy said the alternative to the assumed concessions would be thousands of layoffs, which would save Connecticut about $455 million, and additionally $545 million in spending cuts across the state government. After two months of tedious negotiations, the state and union failed to reach an agreement on worker concessions and the budget. On Tuesday, Gov. Dannel Malloy issued notices to the first of over 4,700 state employees facing layoffs. In a statement, Malloy said "I want to be clear that this is not the road I wanted to go down. I didn't want to lay people off, and I didn't want to make additional spending cuts beyond the $780 million in spending we've already cut.” The layoffs will take affect at the start of the fiscal year on July 1.
In other Midwestern states, legislatures agreed and proposals were passed. Indiana Gov. Mitch Daniels signed the critical $28 billion state budget, which will take in more money than it will spend, and will leave $1 billion in the state’s reserves.
The Kansas state legislature approved a $13.8 billion budget plan on May 13 that will fund the state for the 2012 fiscal year if the governor signs the budget into law. The plan cuts public education, but does not raise taxes. No Democrats in either the Senate or the House voted for the bill. The budget proposal would compensate for the state’s $500 million shortfall, and create a $50 million safety net. The package would cut overall spending by about 5 or 6 percent. The budget plan is now in the hands of Gov. Sam Brownback, who might propose deeper cuts.
This week, Nebraska lawmakers followed suit by approving a two-year budget plan that leaves $299 million in the state’s cash reserves without increasing taxes. The spending plan proposes deep cuts to state agency budgets. In the proposed budget plan, the University of Nebraska-Lincoln’s Innovation Campus would receive $25 million. The bill has gone to Gov. Dave Heineman, who has hinted at a potential veto.
Latest budget shortfalls:
- California: $14 billion through June 2012. Washington Post. March 17, 2011.
- Connecticut: $3.67 billion. The CT Mirror. January 25, 2011
- Delaware: $216.4 million. Delawareonline.com January 28, 2011
- Florida: $4 billion. Gainesville Sun. April 26, 2011
- Georgia: $1.5 billion. Savannahnow.com. February 6, 2011.
- Hawaii: $1.3 billion state budget shortfall over the next two years and an immediate shortfall of $232 million. Hawaii Reporter. April 28, 2011
- Idaho: $92 million (FY 2011-12) Bloomberg.com. February 18, 2011
- Illinois: $9.4 billion (FY 2011-12) Pjstar.com May 9, 2011
- Iowa: $700 million (FY 2011-12). Bloomberg.com. December 22, 2010.
- Kansas: $492 million (FY 2011-12). Nebraska.TV. March 4, 2011
- Louisiana: $1.6 billion FOX 8. December 30, 2010
- Maine: $31.9 million. (FY 2010-11) The Republic. March 28, 2011.
- Massachusetts: up to $1.5 billion. Telegram.com. Masslive.com January 17, 2011
- Michigan: $1.4 billion (FY 2011-12) Shootonline.com. February 20, 2011
- Minnesota: $5.03 billion (FY 2012-13), Twin Cities Daily Planet. March 3, 2011.
- Mississippi: $634 million. Thegovmonitor.com. November 16, 2010.
- Missouri: $1 billion. Kansas City Business Journal. August 5, 2010.
- Montana: $388 million (FY 2011-12). Bloomberg Businessweek. October 8, 2010.
- Nebraska: More than $1 billion (FY 2011-13) Action3news.com. January 6, 2011
- Nevada: State budget shortfall of $2.2 billion. Examiner.com. February 7, 2011
- New Hampshire: $800 million. Sentinelsource.com. September 22, 2010.
- New Jersey: $10.5 billion (FY 2011-12). Blogs.APP.Com. July 22, 2010.
- New Mexico: $452 million. Bloomberg Busineeweek.com. November 11, 2010.
- New York: $2 billion (FY 2012-13)
- North Carolina: $2.4 billion (FY 2011-12) and $2 billion (FY 2012-13) The TimesNews.com. February 20, 2011.
- Ohio: $8 billion (FY 2011-13) Foxnews.com. March 1, 2011. Oklahoma $600 million (FY 2011-12) kfor.com. February 7, 2011
- Oklahona: $500 million (FY 2011-12) Jenksjournal.com. May 10, 2011.
- Oregon: $3.5 billion (FY 2011-13). NRToday. November 23, 2010.
- Pennsylvania: $4 - 5 billion (FY 2011-12). The Philadelphia Inquirer. December 17, 2010.
- Rhode Island: $290 million (FY 2011-12) Brown Daily Herald. March 3, 2011
- South Carolina: $829 million (FY 2011-12). GoUPstate.com. January 7, 2011
- Tennessee: $1 billion. WSMV.com. January 31, 2011
- Texas: $15 billion. Chron.com. Jan. 18, 2011.
- Utah: $700 million. KCPW. December 11, 2010.
- Vermont: $176 million (FY 2012-13). WCAX,com. April 21, 2011.
- Virginia: $200 million (FY 2011-12). WashingtonExaminer.com. December 17, 2010.
- Washington: $5.3 billion for next 27 months. The Olympian. March 18, 2011.
- West Virginia: $150 -$160 million (FY 2011-12). Charleston Gazette. June 7, 2010.
- Wisconsin: 3.6 billion. (FY 2011-12). JSOnline.com. March 10, 2011 and WUWM.com. March 31, 2011.
