Ways & Means hears that ‘money’s fungible’ as committee weighs pressure on general and education funds

The Ways & Means Committee heard a briefing on how pressures on the general fund can ripple across other state funds, including the education and transportation funds, during a discussion led by Emily Byrne of the Joint Fiscal Office.

Byrne told the committee that state funds are not truly isolated: “money’s fungible,” she said, adding that policymakers continually make trade-offs about which fund should pay for which services. She detailed statutory roles for the major funds and described recurring movement of revenue and expenses among them.

The discussion matters because shifts between the general fund and funds dedicated to education or transportation can change how much property taxpayers must pay, while also affecting what services local school boards or state agencies can…