UPDATED: Components of Solutions under Three Budgets

UPDATED (Mar. 1): This post has been updated to reflect budgeting decisions made in the Ways and Means Committee of both chambers and the release of the House Finance Chair's revenue proposal. That proposal, at $758 million, is $100 million less than indicated when the budget was released. The difference is balanced with increased transfers.

The table below compares the solutions used in each of the three budgets released in the last week. Each uses new revenue, deep cuts, and balance transfers, and each assumes substantial federal funding.

Transfers and changes

All three budgets propose using the Rainy Day Fund as well as making transfers from other funds into the General Fund.

New revenue

The House and Governor proposals are similar in size, with the Senate proposal being $160 million higher. A detailed analysis of the three proposals will be available soon on schmudget.

Federal funding

All three budgets assume that the enhanced health care funding provided as part of the federal recovery act will be extended for an additional six months. The Governor assumes this will provide $435; the House and Senate assume it will provide $483 million. The Senate and House both assume $86-87 million for the “Medicare Part D Clawback” as well as additional sources of federal aid. The House budget assumes that the federal government will grant a waiver allowing the state to use federal money to finance portions of Basic Health and a program for adults who are temporarily unable to work due to a physical or mental disability (GA-U).

Cuts

All three budgets propose deep cuts in core public services. For example:

• All three cut spending on higher education;
• All three suspend voter-approved funding to reduce class sizes in early grades and improve student achievement;
• The Governor’s budget and the Senate budget both sharply curtail temporary financial and medical assistance through GA-U for people who are unable to work due to disability;
• Both the Governor’s budget and the House budget make deeps cuts to child care assistance for working families.

Ending fund balance

All three budgets propose modest ending fund balances. The Governor provides ending fund balances that are large enough to absorb the loss if hoped-for federal money does not materialize. The Senate budget and especially the House budget would move into the red if federal funding did not materialize.