Legislative fiscal staff outline $376M shortfall, urge scrutiny of ongoing revenue gap

Alan Knudson, fiscal analyst with Legislative Council, told the Senate Appropriations Committee that the agency’s crossover report and budget status show a continuing shortfall and a complex set of special funds that affect budgeting.

The Legislative Council’s “pink book” and budget status report show a July 1 beginning general‑fund balance based on the January revenue forecast of about $1.112 billion and a set of House and Senate changes that together left the committee facing a roughly $376 million general‑fund shortfall at crossover, Knudson said. He added that, while the state is in better shape than in the last session, ongoing spending now exceeds ongoing revenues by about $1.3 billion and the next biennium could face an estimated $800 million gap in ongoing revenue versus ongoing spending if revenues match forecast.

Knudson said the book organizes appropriations by agency and lists, for each main appropriation, the base level, the House changes and footnotes explaining the changes. “For the record, Alan Knudson with the Legislative Council staff,” he said as he began the presentation. The material also identifies miscellaneous (“orphan”) appropriation bills that add funding to agencies beyond their main bills.