House Finance committee adopts HB1 and HB2 as amended after LBA surplus briefing; votes split 14-11 on key package

The House Finance Committee voted to advance House Bill 1 (the operating budget) and House Bill 2 (the enabling legislation) as amended on April 4 after a detailed surplus-statement briefing from Legislative Budget Assistant Michael Kane and several roll-call votes on technical amendments.

Kane told the committee the documents before members "reflect all of your votes" and summarized the committee's surplus statement, revenue estimates and schedule 2 adjustments used to balance the two-year budget. He said the committee's assumptions left a projected general-fund deficit in FY2025 of about $148.8 million and that House Bill 2 includes a provision allowing the comptroller to request a transfer from the rainy day fund if needed. "There is a section in House Bill 2 which will allow the comptroller to come to the fiscal committee and GNC to request to transfer from the rainy day fund if needed to make up that deficit," Kane said.

The committee discussed the statutory conditions for such a transfer. Kane said the bill would suspend provisions in "09/13 e" to permit a rainy-day transfer because the two conditions for an automatic transfer—(1) an existing general-fund operating deficit and (2) biennial revenues below the plan—would not both be met under the committee—s revenue estimates unless the suspension is enacted. Kane noted those figures will change as actual revenues and agency lapses are finalized.

Why it matters

The votes advance…