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Senate finance leaders report $31 million one-time uptick but warn of structural shortfalls
Summary
Senate Finance presented new revenue estimates showing a $31 million one-time increase and $263 million of ongoing revenue for 2012, but leadership identified a $50 million one-time shortfall to balance the budget and set targets of $60 million for education growth and $60 million for Medicaid undergrowth.
Senator Hilliard, reporting as appropriations leadership, distributed revised revenue estimates and outlined near-term budget priorities for the coming fiscal cycle.
Hilliard said the session—s updated figures produced a $31 million one-time increase above prior estimates and $263 million of ongoing revenue projected for 2012. Leadership told appropriations chairs their first charge is to locate $50 million of one-time funds to close a structural gap and to find $60 million to address growth in public education. Hilliard also highlighted an approximate $60 million undergrowth in Medicaid the legislature must address.
Hilliard described meetings with committee chairs and the governor—s staff to reallocate reductions and said he and Representative Brown will meet with appropriations chairs to identify reductions and reassign resources. He cautioned that relying on one-time revenues to fund ongoing programs would create a structural imbalance for next year: "For every one-time dollar we put in it, it means that we have a structural imbalance," he said.
Senator Valentine asked whether analysts had considered possible petroleum-price drag on the forecast; Hilliard responded that analysts had discussed energy-price risks and will continue monitoring developments. Senators noted the increase in income-tax collections as evidence of economic growth but urged caution on forecast uncertainty.
What happens next: Appropriations committees will review department budget lists with leadership to identify possible reductions or reassignments and to prioritize education and Medicaid growth needs for the remainder of the session.
