Taking vetoes into account, the budget doesn’t balance over four years (plus, a note on minimum wage disemployment effects)
The Legislature passed a 2017–19 operating budget that balanced over four years; an outlook prepared for the compromise indicated unrestricted ending fund balances of $985 million in 2017–19 and $42 million in 2019–21.
Tucked into the $43.7 billion operating budget are several requirements for studies and audits. They didn’t make it into our overview of the budget, but I thought some are worth highlighting:
In a new policy brief, we provide an overview of the 2017-19 operating budget, as passed by the Legislature on June 30. Briefly:
The operating budget compromise included a reduction of the B&O tax rate for all manufacturers—will it be signed by the governor?
In order to balance the operating budget, the Legislature passed two bills that will increase revenues by an estimated $2.070 billion in 2017–19 and $3.358 billion in 2019–21.
A new fiscal year (2018) and a new biennium (2017–19) began on Saturday, July 1, but it doesn’t feel much like a fresh start.
The Senate has passed the compromise 2017-19 budget. If enacted, spending will increase by $5.254 billion (near general fund-state plus opportunity pathways) over 2015-17. Of that, about $2.071 billion is at the policy level. The chart below (click on it for a larger version) shows how the policy changes are distributed throughout the budget and compares the compromise with the budgets passed earlier this session by the Senate and House.
Budget negotiators reached an agreement on the operating budget for 2017–19 Wednesday morning, but details were not made public. The Senate Ways and Means Committee will have an executive session on the budget and other bills today at 8 am, and the budget must be passed and signed by the end of today. This tight timeline means that there was very little time for staff to get the numbers and language together.
Yesterday the Legislature began the second special session of the year, because the Legislature has not come to an agreement on an operating budget or an education plan to comply with the state Supreme Court’s McCleary decision.
Last week we published a two-page comparison of the capital budgets that have been passed by the Senate and House.
New today is a more detailed look at the proposals: Senate- and House-Passed Capital Budgets Include About $1 Billion for Public Schools. Briefly: