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Appropriations panel strips monetary allocations from economic‑development bill, will address funding in budget
Summary
Committee members debated a large economic development bill that contains many allocation amounts embedded in policy sections; the panel agreed to remove or convert monetary sections and to consider funding priorities in the formal budget process, reporting the bill as amended.
Rick Segal of the Office of Legislative Counsel told the committee that much of the economic development bill consists of allocation language (money directed to programs or agencies) rather than conventional appropriation sections.
Pat Hitterton (staff) reported historical spending figures for a downtown/village tax credit program and said past annual incentives had approached $2.2 million in a sample year. Senators raised concerns that allocating dollars inside policy sections forces agencies to re‑prioritize existing budgets and can be confusing if the governor's recommended budget already includes base funding.
Committee members debated two approaches: (1) convert the allocation language into formal appropriations within the bill and add contingency language tying sections to available budget authority; or (2) strike monetary sections from the bill and handle all funding decisions in the regular budget process. Several members said striking the money and keeping policy language was a cleaner solution this late in the session.
After discussion the committee adopted an amendment removing sections that carried specific dollar amounts so that funding decisions could be consolidated in the budget process. Counsel and staff said they will prepare a table that reconciles the bill's numeric language with the governor's recommended amounts so members understand the intended total funding for programs before final decisions.
Next steps: The committee reported the economic development bill as amended (monetary sections removed) and will continue to reconcile numbers with the budget office and relevant agencies.
