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Senate leaders outline $400 million in reductions as budget talks enter final stretch
Summary
Senate Appropriations leadership told colleagues they are nearing agreement with the governor’s office but expect roughly $400 million in ongoing reductions offset by about $200 million in one-time funds and warned revenue updates could force a special session.
Senate leadership told members Wednesday they are close to resolving the fiscal 2009 budget but expect major cuts and possible follow-up action if state revenue estimates change. Senator Hilliard, addressing the chamber, said leaders plan to meet with the governor’s staff and present a proposed agreement to caucus the following day.
Hilliard said the negotiators were “basically looking at $400,000,000 in reductions” and that the plan includes replacing ongoing spending with “one-time $200,000,000,” a shift he warned would create “a shock to the system” for agencies. He urged committee chairs to review budget detail with him ahead of a scheduled executive appropriation meeting and said new revenue estimates coming in two weeks could alter the plan or prompt a special session.
Why it matters: The combination of large ongoing cuts and one-time backfill alters agency baselines and could force agencies to scale back core services or seek emergency action later this year. Hilliard told senators the process has been “time consuming” and that leadership sought input from chairmen to reduce unintended harms where possible.
Supporting details: Hilliard outlined a near-term timetable: joint leadership and caucus meetings to vet any agreement, an executive appropriation committee meeting at 2:30 p.m. Thursday, and the goal of having a bill ready for final action on or about the following Monday or Tuesday. He also said many reductions in fiscal 2009 will shift cost pressure into fiscal 2010 and that appropriators will need to consider additional reductions there.
Staff and oversight implications: Hilliard encouraged senators to bring specific concerns when he meets with committee chairs and to be prepared for possible follow-up if revenue estimates prove lower than expected. He said agency officials have begun reexamining program priorities in light of the cuts.
The Senate took no formal budget vote during the floor remarks; next procedural steps described by Hilliard include caucus review and executive appropriation consideration.
