Senate panel begins 'rack up' budget exercise, weighs reserves and disaster funding
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Summary
Committee staff presented a negotiated spreadsheet of executive and member requests and discussed how to create capacity for additional senate priorities, the accounting of disaster executive orders, and whether changing an implementation date in pending disaster reform could free roughly $155 million in reserves.
Senate Finance Committee staff presented a negotiated 'big spreadsheet' summarizing executive recurring and nonrecurring requests and what the chamber could feasibly accommodate. Staff reported the negotiated outcome produced roughly $19.7 million in recurring general fund increases and about $166.5 million in nonrecurring general fund allocations, plus other-state-fund adjustments. Members were asked to review the packet to identify items for possible cuts or reallocation to create capacity for senator-led priorities.
A central policy discussion focused on disaster funding and reserve accounting: staff said current accounting assumes a $155 million deduction for disaster allotments under the existing executive-order approach; a separate bill reforming the disaster system (which passed the House) has an implementation date that affects whether that $155 million is counted against reserves this fiscal year. Staff said changing the effective date could free up more of that money for appropriation. Committee members debated operating-reserve targets (discussed targets near 28–30%), the statutory cap at 25%, and the role of the appropriation contingency fund. Committee staff advised that FEMA reimbursements (discussed as approximately $178 million in the queue) could populate the natural disaster fund if pursued successfully.
Procedure and next steps: The chair asked senators to review materials and return with priorities; staff offered to provide additional background on the spreadsheet and suggested one-on-one conversations to identify capacity for member amendments. The committee planned to continue hearing items in the afternoon and to reconvene for language votes and further floor coordination.
Related moments: The committee briefly interrupted business to receive an in-person presentation from Penasco Elementary students on a memorial (SM3) to protect insects; the presentation was received and a photograph taken before returning to budget matters.