Governor Mike Rounds’ FY2010 Budget Address
Budget Highlights � A Very Cautious Budget � An Uncertain Economy � Running out of Reserves � Funding only Our Basic Needs � Taking Care of People � Protecting the Public � Educating our Children � Update Fees
In California, Davis has begun addressing a potential $12.4-billion deficit by ordering a hiring freeze and, more recently, floating a plan to cut $3 billion out of the current budget and the next one. The Legislature is set to consider the governor's In Other Poor economy puts a dent in state revenue proposal when it convenes in a special session that he plans to order in January. Davis has stopped short of proposing tax hikes--an option approved by state officials in North Carolina. After the Sept. 11 States –Minneapolis Star Tribune attacks, that state's General Assembly approved a $666-million tax-increase package to rebuild depleted reserves in the event of an even worse downturn. "They've given us a fighting chance to work our way through this," said David McCoy, North Carolina's state budget officer. North Carolina revenue for the first four months of this fiscal year was down about $170 million, paving the way for a State government to cut up to $40 million combination of spending cuts and tax increases. "We're staying very antsy, if you will," added Mike Kiltie, the state's chief economist. "Like California, we have a lot of uncertainty over what will happen when individual income tax reports come in --Des Moines Register in April." North Carolina's general fund has not taken the same hit from the declining stock market as California's has, with personal income tax receipts making up a much smaller portion of that state's general fund. But North Carolina has experienced a Governor recommends $114 million in cuts to higher education variety of unexpected costs in recent years stemming from natural disasters. "We were particularly devastated by Hurricanes Floyd, David, Fran and Opal," McCoy said. --Lawrence Journal-World California's budget problems can be blamed in large part on Wall Street's woes, and the decline of Silicon Valley technology companies in particular. (For their part, Republican lawmakers contend that a fast-growing government has compounded the state's financial problem.) State lawmakers consider big budget cuts California Legislative Analyst Elizabeth Hill released a report last week that found personal income tax receipts from stock options and capital gains set to plummet to $7 billion in the current budget year, after soaring to $17 billion during the --Rocky Mountain News previous one--a sum that made up nearly a quarter of the state's general fund revenues. Washington, another state that has ridden the high-tech roller coaster, has had a different experience because, unlike California, it does not have a personal State pension fund may cut payments income tax. Instead, its general fund is largely dependent on sales tax receipts. Consequently, a recent announcement by Boeing Co. that it would slash up to 30,000 jobs has further shaken the region's --Wisconsin State Journal economy. "Those folks are buying things every day," said Marty Brown, budget director for Washington Gov. Gary Locke. "When they're laid off, they're not buying anything." Washington state is facing a revenue shortfall of as much as $900 million in addition to $300 million in unanticipated expenses. Since Sept. 11, it has frozen $890 million in capital projects ranging from prisons to community colleges, and its States cut services for elderly, disabled largest state agencies have been asked to prepare lists that reflect 15% reductions in spending. "The governor has said he was not going to consider general tax increases in his budget proposal ," Brown said. "But some --Wall Street Journal lawmakers are talking about a temporary sales tax increase to get through this period."
In California, Davis has begun addressing a potential $12.4-billion deficit by ordering a hiring freeze and, more recently, floating a plan to cut $3 billion out of the current budget and the next one. The Legislature is set to consider the governor's In Other Education takes major hit proposal when it convenes in a special session that he plans to order in January. Davis has stopped short of proposing tax hikes--an option approved by state officials in North Carolina. After the Sept. 11 States -- Maine Today attacks, that state's General Assembly approved a $666-million tax-increase package to rebuild depleted reserves in the event of an even worse downturn. "They've given us a fighting chance to work our way through this," said David McCoy, North Carolina's state budget officer. North Carolina revenue for the first four months of this fiscal year was down about $170 million, paving the way for a Paterson: School, medicaid cuts painful, but necessary combination of spending cuts and tax increases. "We're staying very antsy, if you will," added Mike Kiltie, the state's chief --Newsday economist. "Like California, we have a lot of uncertainty over what will happen when individual income tax reports come in in April." North Carolina's general fund has not taken the same hit from the declining stock market as California's has, with personal income tax receipts making up a much smaller portion of that state's general fund. But North Carolina has experienced a Governor, lawmakers work to close $1.2 billion deficit variety of unexpected costs in recent years stemming from natural disasters. "We were particularly devastated by Hurricanes Floyd, David, Fran and Opal," McCoy said. --Arizona Republic California's budget problems can be blamed in large part on Wall Street's woes, and the decline of Silicon Valley technology companies in particular. (For their part, Republican lawmakers contend that a fast-growing government has compounded the state's financial problem.) “We’re going to have to sacrifice.” California Legislative Analyst Elizabeth Hill released a report last week that found personal income tax receipts from stock options and capital gains set to plummet to $7 billion in the current budget year, after soaring to $17 billion during the –Seattle Times previous one--a sum that made up nearly a quarter of the state's general fund revenues. Washington, another state that has ridden the high-tech roller coaster, has had a different experience because, unlike California, it does not have a personal income tax. Instead, its general fund is largely dependent on sales tax receipts. State budget woes mean less salting, plowing of roads Consequently, a recent announcement by Boeing Co. that it would slash up to 30,000 jobs has further shaken the region's economy. "Those folks are buying things every day," said Marty Brown, budget director for Washington Gov. Gary Locke. --Detroit News "When they're laid off, they're not buying anything." Washington state is facing a revenue shortfall of as much as $900 million in addition to $300 million in unanticipated expenses. Since Sept. 11, it has frozen $890 million in capital projects ranging from prisons to community colleges, and its Schwarzenegger calls for sales tax hike, cuts in services largest state agencies have been asked to prepare lists that reflect 15% reductions in spending. "The governor has said he was not going to consider general tax increases in his budget proposal ," Brown said. "But some --Los Angeles Times lawmakers are talking about a temporary sales tax increase to get through this period."
Bottom Line for FY2010 (General Funds in millions) Revenues Sales and Use Tax-- $709.6 Property Tax Reduction Fund-- $129.9 Contractor’s Excise Tax-- $ 90.9 Insurance Company Tax-- $ 69.9 $1,203.8 Other Receipts-- $203.5 Total Receipts-- $1,203.8 - $1,236.2 Expenses - $32.4 Educating People-- $608.9 Taking Care of People-- $410.7 Protecting the Public-- $140.3 Rest of State Government-- $ 76.3 Total Expenses-- $1,236.2
Property Tax Reduction Fund Dec. 2 Starting Point: Current Balance $63,626,269 Projected Uses: Amount needed in FY2009 - $26,828,755 Amount needed in FY2010 - $32,375,962 - $59,204,717 PTRF Remaining (06/30/10) � $4,521,552
FY2009 Adopted vs. Revised Receipts (in millions) Ad. FY2009 Rev FY2009 Change Sales and Use Tax $675.9 $685.7 +$9.8 Property Tax Reduction Fund 127.6 128.0 + 0.4 Contractor’s Excise Tax 92.6 85.1 - 7.5 Insurance Company Tax 64.0 65.7 + 1.7 Bank Franchise Tax 44.3 37.7 - 6.6 Transfer from Trust Funds 32.9 32.9 0.0 Interest Earnings 14.6 15.4 +0.8 Other Continuing Receipts 143.5 138.4 -5.1 One-Time Receipts 12.8 13.0 +0.2 Total Receipts 1,208.2 1,201.9 -6.3 11.9 26.8 + 14.9 Shortfall 1,220.1 1,228.7 + 8.6 Total General Fund Revenues
FY2009 & FY2010 Receipts & Forecasts (in millions) Rev FY2009 FY2010 Change Sales and Use Tax $685.7 +$23.9 $709.6 Property Tax Reduction Fund 128.0 + 1.9 129.9 Contractor’s Excise Tax 85.1 + 5.8 90.9 Insurance Company Tax 65.7 + 4.2 69.9 Bank Franchise Tax 37.7 - 2.6 35.1 Transfer from Trust Funds 32.9 -20.9 12.0 Interest Earnings 15.4 -1.6 13.8 Other Continuing Receipts 138.4 +1.9 140.3 One-Time Receipts 13.0 - 10.7 2.3 Total Receipts 1,201.9 + 1.9 1,203.8 26.8 + 5.6 32.4 Shortfall 1,228.7 + 7.5 1,236.2 Total General Fund Revenues
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