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Local Aid and Finance House Ways & Means chair warns of budget reductions
House Ways and Means Committee Chair Charles Murphy sent House members a letter on June 2 warning that items in the House-approved fiscal 2010 state budget are likely to be reduced by the House-Senate conference committee to reflect the deterioration in state finances since the House approved a budget bill on May 1.
“Unfortunately, over the past four weeks [the] economic reality has become increasingly dire,” he wrote. “[I]t is inevitable that a number of programs receiving support in the House will find their line items reduced or eliminated.”
The House budget was based on a tax forecast of $19.53 billion that had been agreed to by legislative leaders and the governor earlier in the year. The Senate budget, approved on May 21, was based on a revised forecast of $17.99 billion agreed to in early May following a sharp fall in tax collections in April and predictions by economists that an economic recovery would take longer than expected.
The conference committee is working to resolve a wide range of major differences between the state budget bills passed by each branch, including state and local tax provisions, funding levels for state programs and local aid, and a number of law changes.
The largest difference for cities and towns is in the Unrestricted General Government Aid account (formerly Additional Assistance and Lottery), which was funded at $1.094 billion by the House and $865 million by the Senate. The Lottery and Additional Assistance accounts were originally funded at $1.314 billion for fiscal 2009, before mid-year Section 9C cuts totaling $128 million.
• Download Murphy’s letter to House members (80K PDF)
Local Aid and Finance House Ways & Means chair warns of budget reductions
House Ways & Means chair warns of budget reductions
House Ways and Means Committee Chair Charles Murphy sent House members a letter on June 2 warning that items in the House-approved fiscal 2010 state budget are likely to be reduced by the House-Senate conference committee to reflect the deterioration in state finances since the House approved a budget bill on May 1.
“Unfortunately, over the past four weeks [the] economic reality has become increasingly dire,” he wrote. “[I]t is inevitable that a number of programs receiving support in the House will find their line items reduced or eliminated.”
The House budget was based on a tax forecast of $19.53 billion that had been agreed to by legislative leaders and the governor earlier in the year. The Senate budget, approved on May 21, was based on a revised forecast of $17.99 billion agreed to in early May following a sharp fall in tax collections in April and predictions by economists that an economic recovery would take longer than expected.
The conference committee is working to resolve a wide range of major differences between the state budget bills passed by each branch, including state and local tax provisions, funding levels for state programs and local aid, and a number of law changes.
The largest difference for cities and towns is in the Unrestricted General Government Aid account (formerly Additional Assistance and Lottery), which was funded at $1.094 billion by the House and $865 million by the Senate. The Lottery and Additional Assistance accounts were originally funded at $1.314 billion for fiscal 2009, before mid-year Section 9C cuts totaling $128 million.
• Download Murphy’s letter to House members (80K PDF)
Written by MMA Legislative Director John Robertson
