All budget policy discussions have been put on hold until the final revenue numbers are given by the Revenue Estimating Committee on Thursday, March 19th. If the REC decides to reduce the 2015 and 2016 revenue estimates, we could see legislation that would reduce or remove programs across the State because of the lack of funding.
Currently, the revenue committee is projecting that the State will take in $7,195 million in revenue in 2016. This is about $200 million (4.9%) Increase over the 2015 revenues.
The budget crisis is occurring because the Federal government has pushed Medicaid costs down on the State. As of today, approximately $206 million is required in additional funding for the 2016 budget. This completely wipes out the States increase.
The State is trying to give our schools a small increase of 1.25%, $84.8 million in 2016, the Democrats would like to an increase of 4% or $127 million.
In 2013 the State had a surplus of $922 million; as of 2016 the States ending balance surplus will be down to $250 million. There is a real concern amongst legislators; the State does not have enough money coming in to sustain the current spending and programs.
Next year, with very little ending balance left and if revenues falter; we could see significant cuts!