State Budget Shortfalls — April 8, 2011
April 8, 2011
Updates this week: Alabama; Arizona; Florida; Massachusetts; Washington; and Wisconsin
Highlights:
-Alabama Governor declares 15 percent across the board cut to solve current fiscal year deficit. Myfoxal.com. March 31, 2011
-Arizona Governor signs $8.3 billion budget for the fiscal year that begins on July 1. Arizona Republic. April 8, 2011.
-Florida House & Senate pass two different versions of the budget. They expect to resolve differences on April 11. Waltonsun.com. April 7, 2011
-Massachusetts municipal health premiums, benefits are far more costly and generous than those offered in the private sector or through other public employers. Bostonherald.com. April 5, 2011. http://news.bostonherald.com/news/regional/view/20110405report_muni-government_health_premiums_benefits_out_of_whack/srvc=home&position=recent-
-Washington -House Democrats release plan to close $5.1 billion deficit. Seattle Times. April 5, 2011
-Wisconsin-Governor signs bill to eliminate $137 million state budget shortfall for current year. WKOW.com. April 6, 2011.
State Budget Reform Tool Kit: ALEC toolkit provides more than 20 recommendations to modernize state budgeting improve budget transparency, control costs and improve government efficiency. http://www.alec.org/AM/Template.cfm?Section=State_Budget_Reform_Toolkit&Template=/CM/HTMLDisplay.cfm&ContentID=15218
K -12 Education .The problem federal stimulus funds caused. http://blogs.edweek.org/edweek/campaign12/2011/01/race_to_the_funding_cliff.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+CampaignK-12+%28Education+Week+Blog%3A+Politics+K-12%29&utm_content=Google+Feedfetcher
- Possible solutions. http://edreformer.com/2011/01/3-budget-strategies-for-broke-states/
Obama care accelerates a Medicaid meltdown.
-NY Times. January 28, 2011. http://www.nytimes.com/2011/01/29/us/politics/29medicaid.html
-Kaiser Health News. Jan. 30, 2011 http://www.kaiserhealthnews.org/Stories/2011/January/28/medicaid-maintenance-of-effort.aspx
-Governors’ Letter to Congress. January 24, 2011. http://www.nga.org/portal/site/nga/menuitem.cb6e7818b34088d18a278110501010a0/?vgnextoid=b990c07128cad210VgnVCM1000005e00100aRCRD
-Republican Governors ask Feds to ease healthcare mandates. January 2011. http://www.rga.org/homepage/gop-governors-ask-feds-to-ease-healthcare-mandates/
Latest budget projections
California. $14 billion through June 2012. Washington Post. March 17, 2011.
Colorado $450 million. KWGN. March 18, 2011
Connecticut. $3.67 billion. The CT Mirror. January 25, 2011
Delaware $216.4 million. Delawareonline.com January 28, 2011
Florida $3.75 billion. Miami Herald. March 18, 2011
Georgia $1.5 billion. Savannahnow.com. February 6, 2011.
Hawaii -$1 billion (FY 2011-13). Sen. Baker, Lahaina News.com. March 24, 2011
Idaho-$92 million (FY 2011-12) Bloomberg.com. February 18, 2011
Illinois-$13 billion (FY 2010-11) WSJ. January 12, 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.
Maryland-$1.6 billion (FY 2011-12) Baltimore Citybizlist. March 24, 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
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-$112 million (FY 2012-13). 5WPTZ.com. August 22, 2010.
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-$137 million (FY 2010-11) and 3.6 billion. (FY 2011-12). JSOnline.com. March 10, 2011 and WUWM.com. March 31, 2011.
CATO released its “Fiscal Policy Report Card on America’s Governors: 2010” http://www.cato.org/pub_display.php?pub_id=12173. September 30, 2010NY Post analysis finds that “major city infrastructure projects undertaken as past of the federal stimulus package have yet to generate even a fraction of the thousands of promised jobs. NY Post. September 6, 2010. PublicSectorInc.org Experts Rate the Governors. PublicSectorInc.com January 25, 2011. http://www.publicsectorinc.com/psi_articles/2011/01/publicsectorinccom-experts-rate-the-governors.html
Center on Budget and Policy Priorities believe 2012 is “shaping up at states’ most difficult budget year on record. Thus far some 44 states and the District of Columbia are projecting budget shortfalls totaling $125 billion for fiscal year 2012. January 21, 2011. http://www.cbpp.org/cms/index.cfm?fa=view&id=711
Legislators of both parties allow bureaucrats to report a budget shortfall as the difference between what the governor wants to spend (not the current budget) vs the revenue forecast. We have not found any state that reports a shortfall as the difference between the current level of spending and the revenue forecast. Thus, most shortfalls are highly inflated.
Unemployment Insurance: Unemployment insurance and the amounts that states are borrowing from the federal government will be a big issue for many states over the next few years. The U. S. Department of Labor in their July 2010 Unemployment Insurance Outlook stated:
1. “Outlays from state trust funds accounts are projected to exceed revenues and interest income by $27.48 billion in FY 2010 and $18.09 billion in FY 2011.”
2. “State trust fund account balances, net of loans, are projected to continue to fall, from $3.2 billion at the end of FY 2009 to -$60.9 billion at the end of FY 2013, before starting to grown again. Net balances are not projected to become positive again until well beyond 2015.”
3. “Very large amounts of borrowing from the Federal Unemployment Account (FUA) are projected over the next few years. The balance of outstanding loans is projected to increase from $17.4 billion at the end of FY 2009 to a peak end-of-the-year balance of $65.2 billion in FY 2013.This peak balance is almost $30 billion less than projected for the Presidents budget. A total of 35-40 states are expected to borrow.”
Alabama-$100 million state budget shortfall eliminated by Governor declaring a 15% across-the-board cut for the current fiscal year which ends on September 30, 2011. myfoxal.com. March 31, 2011
Arizona-Governor signed budget that eliminates state budget shortfall. Spending in the next fiscal would total $8.3 billion. That’s below the current year’s $8.5 billion and Brewer’s proposed $8.9 billion. The budget restored transplant coverage — eliminated amid much controversy last fall — as part of a major revamp of the state’s Medicaid program that also include enrollment freezes that would reduce the number of people in the program by about 138,000 over the next year. Other elements of the plan include proposed new fees for smokers and obese people who don’t work with their physicians and meet goals. The changes would save the state a projected $500 million to help close a $1.1 billion budget shortfall. Arizona Republic. April 8, 2011.
California – California legislature to decide this week on possible tax extensions, the elimination of redevelopment agencies and other tax hikes to solve state budget shortfall. MercuryNews.com. March 20, 2011
- Governor Brown signed legislation on March 24 to close $11.2 billion of a $26 billion state budget shortfall. LATimes.com. March 25, 2011.
Colorado-State faces $450 million state budget shortfall in FY 2011-12. KWGN. March 18, 2011
Connecticut—State budget shortfall of $3.67 billion and Governor is proposing $2 billion in spending cuts and $1.7 billion in new revenue. The CT Mirror. January 25, 2011
Delaware-$216.4 state budget shortfall for FY 2011-12. Delawareonline.com. January 28, 2011.
Florida- House passed a $66.5 billion and the Senate passed a $69.8 billion version of the budget. The difference has been attributed to bookkeeping differences and will be ironed out when the two houses begin joint meetings on April 11. The details of the bills are different, but no state agency was spared from cuts in either bill. Budget will be reduced from current budget of $70.4 billion. Waltonsun.com. April 7, 2011.
Georgia- Prison system reform will focus on sentencing alternatives. Watchdog.org. February 17, 2011.
-State budget shortfall of $1.5 billion for FY 2012. Savannahnow.com. February 6, 2011.
Hawaii-House Finance committee approves $10.9 billion state budget for FY 2012. The committee agreed to $10.9 billion in state spending in fiscal year 2012, a 7.1 percent increase over last year, and $10.9 billion in spending in fiscal year 2013, a 7 percent increase. The general-fund portion of the budget, over which lawmakers and the governor have the most control, is $5.4 billion in fiscal year 2012, a 10.2 percent increase, and $5.6 billion in fiscal year 2013, a 14.7 percent increase.
-State budget shortfall of $1 billion for FY 2011-13. Sen.Baker. Lahaina.news.com. March 24, 2011.
Idaho-State budget shortfall of $92 million for FY 2011-12. Bloomberg.com. February 18, 2011.
Indiana –Indiana ended fiscal year 2009-10 on June 30, with a balance budget but reserves have dropped to $830 million as of June 30. State Auditor is forecasting reserves will drop to $188 million by June 30, 2011. NWI.com. July 19, 2010
-Indiana saving funds by implementing corrections reform. NY Times. January 17, 2010.
Illinois –Governor proposes nearly $1 billion in agency cuts but wants to increase state spending by $1.7 billion. Proposal includes borrowing $8.7 billion to pay outstanding state bills to solve $13 billion state budget shortfall. Wthitv.com. February 15, 2011.
-State and local unfunded pension liability is more than $200 billion. Chicagotribune.com. August 13, 2010.
-NCSL reports Illinois has worse financial situation of all the states; however, total state spending is up 15.1 percent!!! WBEZ91..5 July 27, 2010
Iowa-State faces state budget shortfall of $700 million for FY 2011-12. Bloomberg.com. December 22, 2010.
Kansas- http://bobscorner.tumblr.com/post/3925198235/state-budget-shortfalls-march-17-2011State budget shortfall of $492 million for FY 2011-12. Nebraska. TV. March 4, 2011.
Kentucky –House adjourns expecting veto from Governor. MurrayLedger.com. March 28, 2011.
Louisiana-State budget shortfall of $1.6 billion for FY 2011-12. KPLCTV.com. December 12, 2010.
Maine-State budget shortfall of $31.9 million for current budget for fiscal year ending June 30, 2011. Governor proposes another supplemental budget to solve deficit. The Republic.com. March 28, 2011.
Maryland –House passed $14.6 billion budget which eliminates state budget shortfall of $1.6 billion for FY 2011-12. The budget is a $1.4 billion increase over the current budget. Baltimore citybizlist.com. March 24, 2011.
Massachusetts-State budget shortfall of up to $1.5 billion. Masslivecom. January 17, 2011.
Michigan-State faces a $1.4 billion state budget shortfall for FY 2011-12. Shootonline.com February 20, 2011
Minnesota-State is considering “pay for performance” bonds that would pay investors a 4 percent return on investment. The state would use the money to pay nonprofit providers that provide job training, help addicts kick their habits, or other such services—but only if they produced specific results that would save the state money. Under the Minnesota plan, nonprofits carry the risk. The investors get their return on investment no matter what, but nonprofits get paid only if they succeed. Philanthropy.com. March 24, 2011.
-Governor vetoes $901 million in proposed budget cuts. StarTribune.com. February 11, 2011.
-State budget shortfall -$5.03 billion (FY 2012-13). Twin Cities Daily Planet. March 3, 2011.
Mississippi- State faces $634 million state budget shortfall for FY 2012. thegovmonitor.com. November 16, 2010.
Missouri-State faces $1 billion state budget shortfall for FY 2012. Kansas City Business Journal. August 5, 2010.
Montana-State faces $388 million state budget shortfall in FY 2011-12 budget. Projected surplus this year of $236 million will help offset this shortfall. Bloomberg Businessweek. October 8, 2010
Nebraska –State budget shortfall of more than $1 billion for FY 11-13 budget. Action3news.com. January 6, 2011
Nevada-State budget shortfall of $2.2 billion. Examiner.com. February 7, 2011
New Hampshire –State faces $800 million state budget shortfall. Sentinelsource.com. Sept. 22, 2010.
–A new way on retiree health care costs. Stateline.org. May 12, 2010
New Jersey-State faces $10.5 billion state budget shortfall for FY 2011. APP.Com. July 22, 2010.
-Governor signs budget that will reduce state spending for the third year in a row. The total state budget is now at roughly the same level it was in 2005. Pensions were underfunded by $3 billion. NJ.com. June 30, 2010. Governor vetoes three bills. Result will save taxpayers $132 million. Government monitor. July 24, 2010.
New Mexico-State budget shortfall grows to $452 million. Bloomberg Businessweek.com. November 11, 2010.
New York –Legislature passes first on-time budget in five years. Stateline.org. March 31, 2011.
North Carolina – State faces a $2.4 billion state budget shortfall FY 2011-12 and $2 billion for FY 2012-13. TheTimesNews.com February 20, 2011
North Dakota- State is forecasting a $696 million surplus for the fiscal year ending June 30, 2011. Inforum.com. September 22, 2010
Ohio- Ohio Governor Kasich’s budget is full of accounting gimmicks. $8 billion state budget shortfall disappears and state budget is increased $7 billion. Columbus Dispatch.com March 16, 2011
-Buckeye Institute analysis of Governor Kasich budget. Buckeye Institute. March 17, 2011
-State budget shortfall $8 billion. Foxnews.com. March 1, 2011
-Senate passes bill to curtail collective bargaining. CNNPolitics. March 2, 2011.
-Oklahoma--State faces $600 million state budget shortfall for FY 2011-12. Kfor.com. February 7, 2011.
Oregon-Governor cuts health care for state employees effective April 1, 2011. Suite101.com. February 26, 2011
-State budget shortfall for FY11-13 is now $3.5 billion. NRToday. November 23, 2010.
Pennsylvania –State budget shortfall of $4 - 5 billion for FY 2011-12. The Philadelphia Inquirer. December 17, 2010.
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Rhode Island – State budget shortfall of $290 million for FY 2011-12 The Brown Daily Herald. March 3, 2011.
South Carolina –State budget shortfall of $829 million. GoUpstate.com. January 7, 2011
South Dakota-Legislature passes balance budget to eliminate state budget shortfall for FY 2012 on March 11, 2011. capjournal.com. March 14, 2011.
Tennessee–$1 billion state budget shortfall for FY 2011-12. WSMV.com January 31, 2010.
Texas - The House approved a budget for the next two years that totals $164.5 billion in state and federal funds, or nearly $23 billion less than current spending. The House Budget Chair expects “at least” 8000 state government employee layoffs. Mysanantonio.com. April 4, 2011. 2010.
-– Texas Public Policy Foundation publishes policy paper on Lessons from the 2003 budget crises. This is a template to solve the current Texas budget shortfall. TPPF. March 2011.
Utah- $700 million state budget shortfall. KCPW December 11, 2009.
Vermont—Governor & Legislative leaders agree the state could face a $112 million state budget shortfall for fiscal 2012-13. 5WPTZ.com. August 22, 2010.
Virginia-State budget shortfall of less than $200 million for FY 2011-12. Washington Examiner.com. December 17, 2010.
Washington –House Democrats release plan to solve $5.1 billion state budget shortfall. Seattle Times. April 5, 2011.
-Gov. Gregoire gets a “F” on state’s budget. Freedom Foundation. March 1, 2011.
-State budget shortfall of $5.3 billion for next 27 months. The Olympian. March 18, 2011.
West Virginia –Legislators want stimulus answers. Charleston Gazette. August 10, 2010
-$150 -160 million state budget shortfall in FY 2011-12 budget. Charleston Gazette. June 7, 2010.http://sundaygazettemail.com/News/201006070756
Wisconsin- Gov. Walker signed bill to eliminate $137 million state budget shortfall for current year. WKOW.Com. April 6, 2011.
