THE U.S. FINANCIAL CRISIS
AND ITS EFFECTS ON CHILDREN, YOUTH, FAMILIES,
SCHOOLS AND SERVICES

STATES: HAWAI’I TO MARYLAND

Updated on September 5, 2009

These are chronologies of developments in the fiscal situations of States.
States that are not currently shown will be added.

Links to full texts follow each sequence of annotations.

Compiled from several sources named in the text and in the links below.

*** Office of the Governor, December 22, 2008:  “Governor Linda Lingle submitted today to the State Legislature a biennium operating budget for fiscal years 2010 and 2011 of $22.42 billion, $11.1 billion in FY10 and $11.3 billion in FY11. . . . Six months prior to developing the biennium budget, as the Council on Revenues lowered its revenue projections for FY09, the Administration took immediate steps to control spending, reduce expenses and economize general funds.  Specifically, the Administration implemented a 4 percent restriction on discretionary general fund expenses; established a general hiring freeze except in areas that impact public health and safety; restricted allotments for most off-budget, specific appropriations; restructured debt on general obligation bonds; adjusted the bond issuance plan; and restricted and converted cash capital improvement project (CIP) funds to bond financing for the Department of Education and the University of Hawai‘i. These actions produced $221 million in general fund savings. But, in light of subsequently lowered FY09 revenue projections, the Administration anticipates the need to transfer $40 million from the Emergency and Budget Reserve Fund (rainy day fund) to ensure a positive General Fund balance at the end of FY09.  In order to meet the constitutional requirement for a balanced 2010-11 biennium budget, all State departments were instructed to conduct a review and assessment of their core functions and essential services. The review resulted in a reduction in general fund operating costs of $395 million ($209 million in FY10 and $186 million in FY11).”
*** Office of the Governor, January 26, 2009:  In her State of the State Address, Governor Lingle reviewed progress in Hawai’i and said, among other things that, “the daunting task we face in the months ahead is making some very difficult decisions in order to address our immediate fiscal problems. . . . Today’s struggling economy has created a deep hole in our budget that we need to dig out of this session.  The Council on Revenues has never in its history lowered its projections by so much in such a short period of time.  Over the past eight months, the Council has reduced its general fund revenue projection by $1.4 billion.  The reality is that we will have to make some unpopular choices that will reduce some services and cause others to be delivered in a different way.  Not because we want to, but because we can’t afford business as usual.
*** Office of the Governor, January 28, 2009:  In an executive memorandum to all department heads, the governor stated that “as a result of the most recent downward revision to general fund revenue projections by the Council on Revenues at the January 9, 2009 meeting, a budget shortfall is anticipated for FY 2009. . . . Effective immediately, FY 2009 general fund allocations for all Executive Branch departments are reduced by an additional amount equal to 2% of discretionary operating expenses from general funds.”
*** Star Bulletin, Honolulu, January 29, 2009:  Governor “Lingle sent the House and Senate budget committee leaders a letter yesterday from Budget Director Georgina Kawamura detailing how the State will meet the projected $75 million budget shortfall for fiscal 2009, which ends June 30.  Administration officials came up with $81 million in additional revenue or cuts to more than offset the deficit.  Kawamura said the State would increase its rainy day fund withdrawal by $20 million to $60 million. The fund has an estimated $74 million now. But Rep. Marcus Oshiro, House Finance Committee chairman, said the current Lingle budget plan leaves the state vulnerable if tax projections continue to drop.”  Oshiro said “We are waiting for her revised financial plan.”
*** Office of the Governor, January 29, 2009:  “Governor Linda Lingle on Monday (January 26) submitted a package of 168 legislative bills to the Hawai‘i State Legislature.” Provisions include creating safe communities and protecting Hawai’i residents from crime; protecting the environment; increasing access to health care; increasing affordable housing opportunities and assisting the homeless; providing services to the State’s most vulnerable populations; improving public education and higher education; and lowering fees.  Provisions for EDUCATION include (a) an income tax credit to provide incentives for individuals and businesses to support science, technology, engineering, and math (STEM) education in public schools; (b) providing comparable funding to public charter schools that is afforded to other public schools; (c) adoption of the Interstate Compact on Educational Opportunity for Military Children; (d) allowing family members and friends to contribute to State-established HI529 college savings accounts (currently allowed only to account owners); (e) allowing the University of Hawai’i to conduct capital improvement projects by increasing revenue bond authority to a total of $250 million; and (f) reinstating the ability of the university Board of Regents to develop internal policies and procedures for procuring goods and services (rather than using the State procurement code).
*** Star Bulletin, Honolulu, February 27, 2009:  “In recent months, Hawaii's Board of Education has trimmed the $2.4 billion public schools' budget by discontinuing funding for campus security, science textbooks and other materials, custodians, charter school student services coordinators and programs such as literacy training for children with learning disabilities and teacher workshops.  The Education Department has said several of the 253 positions scheduled to be slashed when the fiscal year ends June 30 are already vacant.  The cuts were made after Gov. Linda Lingle instructed State departments to lower expenses to dodge a projected $865 million deficit for the new biennial budget.  But the stimulus act could bail out some education programs and jobs, according to U.S. Sen. Daniel Inouye, chairman of the Senate Appropriations Committee.”
*** Office of the Governor, March 4, 2009:  “Governor Lingle submitted to the Legislature her plan to close the projected $650 million revenue shortfall for the remainder of the current fiscal year (FY09) and biennium fiscal years 2010 and 2011.  The Administration's plan balances the budget without raising taxes, without any layoffs or furloughs of State employees, and without making significant cuts to essential public services or programs.  It combines the use of federal stimulus funds, tobacco funds, interest from and charges to various special funds, adjustments to selected benefits for state employees, and further tightening Act 221 tax credits. . . . (In December, Governor Lingle submitted her Administration's FY10-FY11 biennium budget which included a detailed plan to make up for a $1.1 billion revenue shortfall projected by the Council on Revenues.  On January 9, 2009, the Council lowered its revenue projections further by an additional $650 million for FY09, FY10 and FY11.)”
*** Honolulu Advertiser, March 13, 2009:  On March 12, the Council of Revenues “estimated a 5 percent decline in revenue through June, down from 3 percent in January, carving out a $90 million hole. The lower forecast also drops the baseline for the two-year budget, which will force the governor and State lawmakers to change a budget draft now moving through the State Legislature. The council also lowered its estimate for fiscal year 2010 — to 0.5 percent growth instead of 1 percent growth. . . . The Council, predicting the economy will rebound, raised the estimate for 2011 to 5 percent growth, up from 3.5 percent, for a $67.5 million gain.”
*** Office of the Governor, March 25, 2009: “Governor Linda Lingle today announced a balanced financial plan to close the latest $255 million revenue shortfall projected by the Council on Revenues for the remainder of the current fiscal year (FY09) and the biennium fiscal years 2010 through 2011.  As was the case with the two previous financial plans the Governor submitted on December 22 and March 4, the Administration’s most current plan balances the budget without further burdening Hawai‘i residents and businesses with general tax increases, without adding to Hawai‘i’s unemployment with layoffs or furloughs of State employees, and without making further cuts to public services or programs. . . . To help make up the shortfall, the State will use $157.2 million from the State Fiscal Stabilization Fund (SFSF), which is being made available to Hawai‘i under the American Recovery and Reinvestment Act of 2009.  Concurrently, the SFSF funds used in FY09 will require the Legislature to restore $30 million in cuts in both FY10 and FY11 the House took from the Department of Education and $35 million they took from the University of Hawai‘i.  The Department of Education will also receive more than $80 million in Title 1 funding, which is for students of low-income families, and for IDEA (Individuals with Disabilities Education Act) funding for special education programs and services to students with disabilities.  An additional $35 million in federal stimulus dollars is available for the Governor to spend on any government program, and she is proposing to use it to develop a joint education plan that details a common vision of how best to invest these funds to strengthen Hawai‘i’s education system.  The plan will be used as a basis to secure other federal competitive grants for education.”
*** Honolulu Advertiser, March 30, 2009:  “Gov. Linda Lingle wants to save $278 million over the next two years by cutting the wages and benefits of State workers. But the adjustments depend on negotiations with labor unions, and State lawmakers are increasingly worried the talks will not be completed by the time the session ends in early May. . . . The Lingle administration has not detailed how it would achieve the $278 million in reduced labor costs, but the governor and budget director have said that wage cuts would likely be on a sliding scale — with the highest paid workers taking the largest cuts — and that the cuts would be temporary, so workers would go back to their base pay from this year after the two-year budget cycle ends.”
*** Honolulu Advertiser, April 23, 2009: “Ignoring Gov. Linda Lingle's veto threat, the State House and Senate voted yesterday (April 22) to raise taxes to help balance the State's budget.  The bills would increase State income taxes on the affluent, hotel-room taxes that fall mainly on tourists, cigarette and other tobacco taxes, and the conveyance tax on the sale of luxury homes. . . . Lawmakers missed the Tuesday deadline to have bills at the governor's desk within 10 session days of adjournment, which would have required Lingle to sign or veto the bills before the session closes May 7. (NOTE:  The session was subsequently extended to May 8.)
*** Office of the Governor, May 7, 2009:  In her veto of three tax bills, the  Governor’s statement says that “as residents and businesses across the State are facing challenges as the result of today's economic climate, Governor Lingle vetoed three bills that would raise taxes on residents, visitors and businesses, cause further job losses, and delay our economic recovery. . . . The bills vetoed by the Governor are (a) SB1111 SD1 HD1 CD 1 -- Increases the transient accommodation tax by 28 percent over the next two years, adding to the cost visitors and residents pay when staying at hotels, time-shares, and bed & breakfast lodgings. . . . (b) HB1741 HD1 SD1 CD1 -- Increases by up to 257 percent the conveyance tax home buyers, businesses, real estate developers, charities, non-profit organizations, and other purchasers of all commercial, industrial, and agricultural real estate must pay for transactions over $2 million. . . . (c) HB1747 HD1 SD1 CD1 -- Increases the personal income tax rate on almost 37,000 Hawai’i income tax filers, sole proprietors, and small businesses that file their business income as personal income.”  Links to the Governor’s statements of objections are included in this  announcement.
*** Pacific Business News, May 8, 2009:  “The Hawaii Legislature on Friday overrode Gov. Linda Lingle’s vetoes of four bills that raise tax rates on hotel rooms, high-income earners, luxury home transactions, and tobacco. . . . No furloughs or mass layoffs of State workers are planned. The final State budget calls for the elimination of 200 State jobs, nearly all of which are vacant. . . . Lingle did sign into law Thursday HB 1175, which raises cigarette taxes. The tax will go from 10 cents to 13 cents in July, up to 14 cents in 2010 and 15 cents in 2011.”
*** Honolulu Advertiser, May 17, 2009:  According to this article, “the widest splits between Lingle and Democrats on the budget, now that the governor's vetoes of tax increases have been overridden, are over education spending and labor savings from collective bargaining (with labor unions.   Lingle wants to use federal stimulus money meant for public education to help close the deficit, including for the fiscal year that ends in June, while lawmakers have spread the federal money over the next two fiscal years to help offset State spending cuts in education.. . . . With the likelihood the State's revenue forecast will fall later this month, creating new holes for this fiscal year and the following two-year budget cycle, and the fact that Lingle has the discretion to implement the budget lawmakers passed starting in July, there is no certainty the existing budget will stand.” 
*** Office of the Governor, May 18, 2009:  “Governor Linda Lingle informed all State department heads today of the immediate need to implement a further 2 percent reduction on discretionary spending for the remainder of FY09, in light of an anticipated reduction in the revenue forecast, legislative actions taken during the 2009 session and the need to meet the balanced budget requirement of the Hawai‘i State Constitution. . . . There is a further concern that the Council on Revenues may lower its revenue projections for FY09 again on May 28, 2009. . . . The total restrictions amount to $36.3 million.”
*** Office of the Governor, May 28, 2009:  Governor Lingle issued a statement saying that “the Council on Revenues’ latest reduced revenue projections show that the State budget shortfall is much more severe than earlier projected. “Although last week I instructed all State departments to reduce discretionary spending by 2 percent, on top of earlier budget restrictions of 6 percent, this will not be enough to cover the $185.6 million shortfall between now and June 30, 2009.  I will be meeting tomorrow and throughout the weekend with my staff to identify options to close the immediate shortfall projected by the Council on Revenues, as well as our projected $500 million shortfall in the fiscal 2010 – 2011 budget period that begins July 1, 2009.
*** Pacific Business News, June 1, 2009:  “Saying Hawaii faces a “fiscal emergency that is unprecedented in size and scope,” Gov. Linda Lingle on Monday ordered all State workers to take three unpaid days off per month.  In an address broadcast from the State Capitol, Lingle also said she would scale back free Medicaid benefits to low-income adults and said the State would delay paying some of its larger bills until July.  The governor is also asking the Judiciary, the Legislature, and the Office of Hawaiian Affairs to implement equivalent furlough days or restrict their budgets. . . . The furloughs will save $688 million. Lingle said the savings are needed to close a gap of $730 million between now and June 30, 2011, as forecast by the State’s Council on Revenues May 28.”
*** Office of the Governor, June 9, 2009:  “Governor Linda Lingle announced today that the State of Hawai‘i successfully sold $725.3 million of general obligation bonds to fund various State capital projects, including public school facilities, University of Hawai‘i projects and other capital projects statewide.  The $725.3 million bond sale included $500 million of new money proceeds to fund new capital improvement projects and $225.3 million of refunding bonds to refinance outstanding debt.  The refinancing of existing debt resulted in a reduction in debt service of approximately $100 million per year in fiscal years 2010 and 2011.  The overall interest rate for the bonds was 4.12 percent.  Moody’s Investors Service, Standard & Poor’s Ratings Service and Fitch Ratings affirmed the State’s bond ratings of Aa2, AA and AA, respectively.

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Governor Lingle Unveils Two-Year Budget, Six-Year Financial Plan, Office of the Governor, December 22, 2008:
http://hawaii.gov/gov/news/releases/2008/governor-lingle-unveils-
two-year-budget-six-year

State of the State Address, Governor Linda Lingle, January 26, 2009:
http://hawaii.gov/gov/initiatives/2009/address

Illinois: A Huge Deficit and a Struggle Between Taxes and Drastic Reductions
Compiled from several sources named in the text and in the links below.

*** Office of the State Comptroller, February 13, 2008:  “State government is unprepared for an economic downturn that may already be underway because it has failed to address numerous long-standing budgetary issues, Comptroller Dan Hynes warned in a special report released to the General Assembly today. . . . The analysis states that Illinois General Funds revenues from FY03 through FY07 increased nearly $5.5 billion, or 5.5 percent per year, driven by a 24 percent growth in income and sales taxes.  If current year government projections hold, revenue growth will be over $6 billion.  And yet, even with the large growth in spending, key areas were not addressed, according to the report:
>>>> “The State's budget has remained consistently out of balance.  The deficit was $4.16 billion at the end of FY03.  At the end of FY07, it was nearly $3.6 billion, based on preliminary unaudited estimates.  ‘During this period of national economic growth, many states took advantage of their increased revenues to stabilize their financial positions,’  Hynes told legislators. By contrast, Illinois ‘retained its status of having the worst deficit in the nation for the fourth year in a row,’  he said.
>>>> “The State continues to abuse the loophole that allows Medicaid and other health care bills (Section 25 liabilities) to be paid from the following year's appropriations, which in turn contributes to persistent structural deficits, payment delays to State vendors and limited access to quality healthcare.   Section 25 liabilities were over $1.8 billion in FY03, and had increased to nearly $3.4 billion at the end of FY07, based on preliminary unaudited estimates.
“ The report further details how issues of critical importance have gone largely unaddressed, as revenue growth was directed primarily toward new spending:
>>>> “The State's five retirement systems remain among the most poorly funded in the country. . . .
>>>> “Although education has received significant funding increases, investment in education is still below recommended levels and the State's education finance system remains unchanged, resulting in continuing funding disparities in school districts across the state. Higher education will actually receive less in FY08 than it did in FY03. . . .
“Hynes predicted ‘difficult’ days ahead as a new budget is crafted, in part because Medicaid and pension liabilities alone are expected to consume all FY2009 revenue growth.”
*** Office of the State Comptroller, November 13, 2008: “Facing an unprecedented bill backlog of nearly $4 billion that could balloon to more than $5 billion by March 2009, Comptroller Dan Hynes today urged State leaders to take immediate steps to ease the crisis which is threatening service providers and government units across Illinois.   Hynes said the 12-week payment delay vendors now face is untenable and he noted the uncertainty of the national economy makes it difficult for vendors who are owed money by the State to borrow funds to bridge the gap between the time they provide services and the time they are paid for those services. . . . In a letter to the Governor and legislative leaders, Hynes urged changes in Illinois law that would provide greater flexibility when the State borrows money and allow the State to establish a revolving line of credit to deal with the current problems.”
*** Illinois Office of Management and Budget, January 2009:  “Fiscal year 2009 second quarter general funds show a net operating loss of $2.5 billion, driven by declining revenues and increased expenditures, as compared to fiscal year 2008 second quarter.
*** Illinois State Board of Education, January 14, 2009:  “In a letter to the Illinois General Assembly, State Superintendent of Education Christopher A. Cox said, among other things, that “the purpose of this letter is to discuss the financial situation in this current fiscal year (FY 2009) and to urge you to do whatever possible to maintain the financial commitment that has been made to Illinois students. . . . General State Aid claims are being paid on time . . . but many of the other grant funds upon which school districts rely for daily operations are lagging two, three, or more months behind.  For example, participants in the State’s nationally recognized early childhood education program have withdrawn due to the delays in funding (given that payroll and other costs simply cannot be met). . . . . The actual reduction of the FY09 dollars -- a scenario which I and others continue to hear as a possibility -- would be a far harsher blow.”
NOTE:  On January 29, 2009, Lieutenant Governor Pat Quinn replaced former Governor Blagojevich.
*** Office of the State Comptroller, February 4, 2009:  In his FY 2010 Budgetary Outlook, the State Comptroller stated that “the development of the fiscal year 2010 Illinois State budget will be a formidable and unprecedented challenge.  Based on current revenue and expenditure estimates, the existing imbalance in the fiscal year 2009 budget, and deteriorating economic conditions, a budget deficit of approximately $8.95 billion will need to be addressed as the fiscal year 2010 budget is structured.  After factoring in potential stimulus funds as included in existing congressional estimates, the State may still face a $6 billion deficit.  This is with no expenditure growth beyond current fiscal year 2009 appropriations, with the exception of Medicaid and pension contribution increased mandated by statute.”
*** Office of the State Comptroller, February 10, 2009: “Comptroller Dan Hynes met Monday with social service providers who serve disadvantaged clients in the Chicago area to discuss the State's inability to reimburse vendors in a timely fashion. . . . Hynes also informed the vendors that a special hotline has been set up to give vendors information about the status of payments owed to them, and to assist vendors in identifying issues that are impacting the timely processing of those payments.”
*** Office of the Governor, February 10, 2009:  “Governor Pat Quinn announced a series of cost-saving measures aimed at easing Illinois’ current budget crisis. The changes go into effect immediately at State agencies and apply to the state’s Fiscal 2009 budget. . . . Governor Quinn said these cost reductions are the start in a series of tough fiscal decisions his Administration will be making as it deals with the state’s estimated $9 billion deficit for the current fiscal year and Fiscal 2010. . . . Governor Quinn’s cost-saving plan for Fiscal 2009 includes: (a) reduce spending; . . . (b) cut travel expenses; . . . (c) defer major purchases; . . . (d) limit contract work; . . . (e) restrict hiring
*** Office of the Governor, March 18, 2009:  “Governor Pat Quinn on Wednesday presented a $53 billion budget plan for fiscal year 2010 that will end an era of fiscal irresponsibility and mismanagement, and help struggling families during the worst financial crisis in Illinois’ history.  ‘Illinois is staggering to pay an $11.5 billion deficit and has a mountain of unpaid bills,’ Governor Quinn said in his speech to the 96th General Assembly. . . . The plan closes the budget gap of $4.3 billion for fiscal year 2009 and $7.3 billion for fiscal year 2010.”
*** Office of the Governor, March 18, 2009:   In a Budget Briefing  document accompanying his budget proposals, the Governor showed that “revenue is expected to decrease by $2.5 billion in fiscal year 2009 (from fiscal 2008) and is projected to continue to decline through most of fiscal year 2010.  Increases in Medicaid, social services, employee benefits, and other required costs would be $34.3 billion in fiscal year 2010 without reform and cuts. . . . Cuts alone would take the State back to 2004 funding levels. . . . Governor Quinn’s budget priorities are: REFORM -- Make State government honest, ethical, and transparent; reform the State’s pension systems; and make the tax system fair for working families;  RESPONSIBILITY -- Close the budget gap but protect Illinois’ families; preserve our commitment to education; reduce the Medicaid payment cycle; and increase health care for veterans; and (c) RECOVERY -- Jump-start Illinois’ economy with a comprehensive jobs plan that will build new schools; repair our aging roads and bridges; improve mass transit; create ‘green’ jobs; and maximize the federal recovery money Illinois receives.”   The paper includes information on (a) State sales tax holiday; (b) increase in the individual income tax rate, paired with a more generous personal exemption that provides tax relief for working families; (c) cutting the budget gap by $1.3 billion (including $100 million in ordered extra spending cuts in fiscal year 2009); (d) across-the-board 2 percent reductions in grant programs, excluding health care and education programs; (e) cuts and efficiencies throughout various State agencies; (f) pension reform; (g) tax code changes applying to business; (h) corporate income tax increase; (i) investing in education; (j) Illinois Jobs Now! to support 340,000 jobs.
*** Office of the Governor, March 20, 2009:   In Executive Order 3, Governor Quinn stated that  “my proposed budget for FY 2010 meets the immediate challenges of the year ahead; however, long-term concerns remain that cannot be fixed without significant reforms that streamline operations and restructure organizations within government and achieve efficiencies in managing grants and purchasing services. . . . . There is hereby created the Taxpayer Action Board as an independent advisory body having the duties set forth in this document, with respect to the Office of the Governor.
*** Office of the Governor, March 31, 2009:  “Governor Pat Quinn today announced that Illinois will receive $890 million in federal recovery dollars to increase food stamp benefits for over 600,000 families. In addition, Illinois also expects to receive $11.5 million for the Emergency Food Assistance Program from the American Recovery and Reinvestment Act. Illinois has already ordered 3.5 million pounds of food for food banks.’
*** Office of the Governor, April 1, 2009:  In Executive Order 7, Governor Quinn states that “it is vital to reduce energy consumption and produce cost savings in the operations of all agencies, offices, divisions, departments, bureaus, boards and commissions directly responsible to the Governor. . . . Agencies control hundreds of buildings throughout the State and spend nearly 120 million dollars a year on energy for their facilities. . . . (Therefore) the Department of Central Management Services shall be responsible for implementing a program to increase energy efficiency, track and reduce energy usage, and improve the procurement of energy for all State-owned and State-leased facilities for all agencies.”
*** Office of the Governor, April 7, 2009:   Governor Pat Quinn signed Senate Bill 1013 and Senate Bill 101 which benefit Illinois children.   “Senate Bill 1013 expands the Redeploy Illinois Program which provides critical services for at-risk youth between the ages of 13 and 18.  The program provides funding to counties for local agencies to deliver services such as therapy, substance abuse treatment, life skills education and victim-related services.” . . . Senate Bill 101 “requires health insurance policies to cover habilitative services for children under 19 years of age with a congenital, genetic or early acquired disorder.”
*** Office of the Governor, April 13, 2009:  “Governor Pat Quinn announced that starting today, nursing homes and hospitals long awaiting payments from the State of Illinois will begin to receive money, thanks to funding from the American Recovery and Reinvestment Act (ARRA).”
*** Office of the State Comptroller, May 2009:  A display from this Office shows that, in April 2009, Illinois unemployment numbered 619,500 (9.4%).  In comparison,  April 2008 unemployment was 415,800 (6.2%).  In both years, the Illinois unemployment rate was greater than the U.S. unemployment rate.
*** Office of the Governor, May 14, 2009:  “Governor Pat Quinn announced that he has issued $1 billion in General Obligation certificates to pay community organizations and vendors more quickly for services that have already been performed. . . . The State’s notes priced strongly at an interest rate of 1.86 percent.  The transaction was divided into two maturities.  There were six bidders on the April 2010 maturity and seven bidders on the May 2010 maturity.  Morgan Stanley & Co Inc was the winning bidder for the entire offering. The deal is expected to close on May 21, 2009.  The State plans to issue another $1.25 billion in bonds in June for a total of $2.25 billion.”
*** Post-Dispatch, St. Louis MO (Springfield Bureau), May 22, 2009:  “Illinois lawmakers on Thursday (May 21) sent Gov. Pat Quinn a $26 billion infrastructure plan that will use revenue from video gambling, higher liquor taxes and other controversial sources to rebuild the state's crumbling roads, bridges and schools.  Quinn has been a strong backer of the concept of the huge public-works program, which would create tens of thousands of jobs, and there's little doubt he will sign it into law.  But a Quinn aide hinted Thursday that he might hold off until he has lawmakers' agreement on a new State operating budget — a much more contentious issue that's likely to come to a head next week.”
*** St. Louis Beacon, June 1, 2009:  “By the time the sun set on the Illinois capitol Sunday, Gov. Pat Quinn already knew his budget wasn't going to pass.  Lawmakers had spent the last few days scrambling over proposals that aimed to fish the state out of an $11.6 billion budget deficit. . . . Quinn wanted legislators to increase taxes; legislators wanted to "skim" money from State funds -- or to take unused money in special purpose funds to use elsewhere. . . . Instead, the legislature approved a smaller budget that will ‘keep the lights on,’ as Rep. Mike Jacobs of Moline put it, but force severe cuts later if more work isn't done.  Lawmakers were sent home in the wee hours of the morning, in hope they won't need to return for several weeks.  Meanwhile, legislative leaders will continue meeting to agree on a way to fund the State budget.”
*** Office of the Governor, June 18, 2009:   Governor Quinn has “signed a law that will make health insurance more affordable for laid-off workers of small businesses and their families.  Under the American Recovery and Reinvestment Act (ARRA), those who formerly worked at companies of 20 employees or more are eligible for a subsidy that reduces by 65 percent the cost of COBRA health care coverage.”
*** Office of the Governor, July 7, 2009:   Responding to the budget sent to him last week (as the result of a special session of the General Assembly), “Governor Pat Quinn today vetoed House Bill 2145 saying the General Assembly’s bill fails to make any significant cuts in State operations.  Instead, the Governor proposed passing a responsible ‘Tough Choices’ budget, which calls for cutting an additional $1 billion in State costs. . . . Governor Quinn said the General Assembly and all statewide offices should cut their budgets by at least 10 percent, a cost-cutting move that includes an option of ordering up to 12 furlough days for all employees.  . . . The Governor’s ‘Tough Choices’ budget proposes cutting $1 billion from the State budget including: (a) $185 million from State operations, including approximately 2,600 layoffs and 12 furlough days for State employees; (b) $140 million from Medicaid and health insurance; (c) $250 million in targeted reductions in grant programs’ (d) $125 million from the Department of Corrections’ (e) $175 million cut from proposed increases for K-12 education; (f) $25 million from other State offices, departments and agencies not under the Governor; (g) $100 million in additional reserves.”  In the recording, the Governor said that layoff notices had already begun to go out to approximately 2,600 State employees.
*** State Journal-Register, Springfield, July 16, 2009:  “Illinois lawmakers Wednesday night finally cobbled together a new $26 billion spending plan that relies heavily on borrowed money. . . . Senate President John Cullerton, D-Chicago, said the deal is based on $6.7 billion worth of borrowing -- $3.5 billion by issuing bonds to make the State’s pension payments and $3.2 billion by letting State bills pile up unpaid.  The new budget will force State vendors to wait even longer to be paid for their services.  Many State employees are still expected to lose their jobs, and human service agencies will still experience cuts, budget negotiators said. . . . Taxes were not increased, but lawmakers bemoaned the fact that the budget keeps the State in a precarious financial situation. . . . One of the budget bills approved Wednesday requires lawmakers to return 12 days of pay to the State, just as Quinn is asking State workers to take off 12 unpaid days to reduce the need for layoffs.”
*** Chicago Tribune, July 17, 2009:  Governor Quinn said Thursday (July 16)  that “the $26 billion spending plan he signed into law gives the State a ‘stable budget,’ but there is plenty of uncertainty about the cuts and other tough choices he will have to make in coming months to keep government on track.  The budget relies on more than $1 billion in unspecified cuts to be made by Quinn and another $1 billion in spending for him to hold in reserve. . . . Quinn said he would make belt-tightening moves in the next 90 days to prove to lawmakers ‘I mean business’ and bolster his push for the legislature to approve a State income tax increase -- perhaps during its fall session.”
*** Chicago Sun-Times, July 22, 2009:  “State education officials Tuesday slashed millions of dollars from dozens of initiatives -- ranging from preschool to after-school to gifted program. . . . Acting in emergency session, State Board of Education members faced with shrunken State revenues approved a $7.26 billion budget for this coming school year, down $146 million, or 2 percent, from fiscal year 2009. . . . Taking the biggest hit was early childhood education, which lost $123 million. . . . All State money for gifted education was ‘zeroed out,'’ along with dollars for two after-school programs. . . . Efforts to help the blind and dyslexic, teacher recruitment in hard-to-staff schools, high school students taking Advanced Placement classes, and teachers who earn rigorous national certification all took whacks.  Bilingual education was trimmed 25 percent, or $19 million. . . . However, districts will receive $160 more per pupil under the new funding plan, and categorical spending -- most of it for special education -- will increase by $145 million.”
*** Office of the Governor, July 31, 2009:  The Governor’s Allocation Plan for FY 2010-2011 sets forth the following reductions:  “(a) State operations (includes layoffs, 12 furlough days) -- $185 million; (b) Medicaid -- $140 million; (c) Grants -- $250 million; (d) Education -- $175 million; (e) Corrections -- $125 million; (f) Additional reserves -- $100 million; (g) Other State offices, departments and agencies -- $25 million.  Total reductions = $1 billion. . . . This does not include funds to pay down an estimated $3.9 billion backlog in unpaid FY09 bills. . . . New revenues must be found to restore funding for vital Fiscal Year 2010 programs and meet future obligations.”  The total spending plan is $27.5 billion.  Many other details are included in this overview.
*** Office of the Governor, August 19, 2009:  “Governor Pat Quinn today announced $8.9 million in federal funds for Illinois’ AmeriCorps programs, including $2.7 million from the American Recovery and Reinvestment Act (ARRA). . . . This funding will allow the Serve Illinois Commission to support 31 AmeriCorps programs with over 1,000 volunteers. With this money, programs will be able to expand existing services or focus on specific areas that strengthen communities. A list of programs receiving funds from the federal Corporation for National and Community Service and the ARRA is attached.”
*** U.S. Bureau of Labor Statistics, August 21, 2009:  The Illinois seasonally adjusted unemployment rate was 10.4 percent in July 2009 -- up from 6.7 percent in July 2008.  Illinois is one of the States with a statistically significant unemployment rate change during that period.
*** Chicago Tribune, August 28, 2009:  “The elimination of a state-funded textbook program has left some school administrators scrambling to figure out how to make up the funds without jeopardizing education. . . . Officials learned this month that because of budget cuts, the Illinois State Board of Education would no longer fund the program, which provided public and private schools with new books of the school's or district's choosing. . . . Funding rotated annually between K-6 and 7-12 grade student.:
_________________________________
Hynes Issues “Sobering” Report on State Finances, Office of the State Comptroller, February 13, 2008:
http://www.ioc.state.il.us/news/ViewNewsRelease.cfm?ID=2070837222

Hynes: State Faces Unprecedented Bill Backlog, Urges Immediate Action, Office of the State Comptroller, November 13, 2008:
http://www.ioc.state.il.us/news/ViewNewsRelease.cfm?ID=2070837236

Fiscal Year 2009 Second Quarter Financial Review, Illinois Office of Management and Budget, January 2009:
http://www.state.il.us/budget/qfr.asp

Letter to the Illinois General Assembly from the State Superintendent of Education, Illinois State Board of Education, January 14, 2009
http://www.isbe.state.il.us/pdf/sup_ltr_ga_jan09.pdf
*** The Illinois State Board of Education’s proposed FY 2010 budget (and information on earlier budgets) is available at:
http://www.isbe.net/budget/

Transitional Fiscal Report/FY 2010 Budgetary Outlook, Office of the State Comptroller, February 4, 2009 -- Click at the bottom for the full report:
http://www.ioc.state.il.us/news/ViewNewsRelease.cfm?ID=2070837243

Hynes Meets with Local Providers to Discuss Payment Delays, Office of the State Comptroller, February 10, 2009:
http://www.ioc.state.il.us/news/ViewNewsRelease.cfm?ID=2070837240

Governor Quinn Orders Cost-Saving Plan, Office of the Governor, February 10, 2009:
http://www.illinois.gov/PressReleases/ShowPressRelease.cfm?SubjectID=3&
RecNum=7385

Governor Pat Quinn Makes Tough Choices to Boldly Address Fiscal Crisis, Office of the Governor, March 18, 2009:
http://www.illinois.gov/PressReleases/ShowPressRelease.cfm?SubjectID=3&RecNum=7422
*** The Governor’s Illinois State Budget for Fiscal Year 2010 (July 1, 2009-July 30, 2010) is at:
http://www.state.il.us/budget/
*** Also see coverage in the Wall Street Journal, March 20, 2009:
http://online.wsj.com/article/SB123750996842990651.html?mod=
googlenews_wsj

Illinois State Budget Briefing, Fiscal Year 2010, Office of Management and Budget:
http://www.state.il.us/budget/

Executive Order 3 (Taxpayer Action Board), Office of the Governor, March 20, 2009:
http://www.illinois.gov/gov/execorders/2009_3.htm

Governor Pat Quinn Announces Recovery Funding for Food Stamps and Food Banks, Office of the Governor, March 31, 2009:
http://www.illinois.gov/PressReleases/ShowPressRelease.cfm?SubjectID=3&
RecNum=7454
*** The Illinois website on the use of ARRA funds is at:
http://recovery.illinois.gov/
*** The Illinois State Board of Education’s ARRA website is at:
http://www.isbe.net/arra/default.htm

Executive Order 7 (State agency energy consumption), Office of the Governor, April 1, 2009:
http://www.illinois.gov/gov/execorders/2009_7.htm

Governor Pat Quinn Signs Two Bills to Benefit Youth, Office of the Governor, April 7, 2009:
http://www.illinois.gov/PressReleases/ShowPressRelease.cfm?SubjectID=3&
RecNum=7469

State Begins Paying Health Providers More Quickly, Office of the Governor, April 13, 2009:
http://www.state.il.us/budget/Press%20Releases
/04.13.09%20GOV%20HFS%20Nursing%20Home%20Payments.pdf

Illinois Unemployment Rate (for March and April 2009):  Office of the State Comptroller, May 2009:
http://www.wh1.ioc.state.il.us/fiscalcondition/EconomicData.htm

State Issues $1 Billion in Certificates to Speed Payment on Outstanding Bills, Office of the Governor, May 14, 2009:
http://www.state.il.us/budget
/Press%20Release%2005%2014%2009%20GOV%20STB%201%20billion%20.pdf

Ill. Infrastructure Plan Goes to Governor, Post-Dispatch, St. Louis MO (Springfield Bureau), May 22, 2009:
http://www.stltoday.com/stltoday/news/stories.nsf/illinoisnews/story
/5C2873C685745C47862575BE001055C7?OpenDocument

Illinois Budget Shaky as Legislators Skid Past Deadline, St. Louis Beacon, June 1, 2009:
http://www.stlbeacon.org/region
/llinois_budget_shaky_as_legislators_skid_past_deadline

Governor Quinn Signs Bill to Make Health Insurance More Affordable for Unemployed Workers, Office of the Governor, June 18, 2009:
http://www.illinois.gov/PressReleases/ShowPressRelease.cfm?SubjectID=3&RecNum=7660

Governor Quinn Vetoes Budget Bill; Calls for $1 Billion in Cuts, Office of the Governor, July 7, 2009:
http://www.illinois.gov/PressReleases/ShowPressRelease.cfm?SubjectID=3&RecNum=7673

Budget Deal Reached; Workers To Be Paid, State Journal-Register, Springfield, July 16, 2009:
http://www.sj-r.com/news/x135755750/Bleak-new-budget-relies-on-
borrowing-layoffs-payment-delays

Illinois’ “Stable Budget” Loaded With Buts, Chicago Tribune, July 17, 2009:
http://www.chicagotribune.com/news/local/chi-illinois-state-
budgetjul17,0,5204234.story

Millions Cut From Education Initiatives, Chicago Sun-Times, July 22, 2009:
http://www.suntimes.com/news/education/1678592,CST-NWS-
educ22web.article

Governor’s Allocation Plan: Overview, Office of the Governor, July 31, 2009:
http://www.illinois.gov/publicincludes/statehome/gov/documents
/FY10%20Allocation%20Plan.pdf
*** Complete allocation information is available at:
http://budget.illinois.gov/

Governor Quinn Announces Nearly $9 million for AmeriCorps Programs in Illinois, Office of the Governor, August 19, 2009:
http://www.illinois.gov/PressReleases/PressReleasesListShow.cfm?
RecNum=7770

Regional and State Employment and Unemployment Summary, U.S. Bureau of Labor Statistics, August 21, 2009 (Note: The data at this link are updated monthly):
http://www.bls.gov/news.release/laus.nr0.htm

Illinois Textbook Crunch: State Funding Cut Has Schools Scrambling, Chicago Tribune, August 28, 2009:
http://www.chicagotribune.com/news/local/chi-textbooks-
zonesaug28,0,6215904.story


Indiana: Revenue Gaps and a Proposal to Reconstruct School Funding
Compiled from several sources named in the text and in the links below.

*** Office of the Governor, December 11, 2008:  “The State Budget Committee today received the updated revenue forecast for Fiscal Years 2009 through 2011. The revised forecast projects a $763 million gap between spending ($13.305 billion) and anticipated revenue ($12.542 billion) for the FY09.  Governor Daniels today announced actions the State will take in the coming months to reduce spending for FY09 and assure than Indiana maintains a balanced budget.”  An accompanying fact chart shows that budget management actions already implemented include (a) executive agency budgets cut 7 percent; (b) strategic hiring process put in place; and (c) delayed discretionary new capitals pending.  New budget actions planned include 3 percent additional cuts for executive agency budgets (bringing the total for FY09 to 10 percent less spending) and 3 percent less spending on grants and subsidies such as planning projects and publications.
*** Office of the Governor, December 23, 2008:  “Governor Mitch Daniels today suggested that public employees at all levels in Indiana consider skipping a pay raise in 2009. He said such action is already happening in some locations and would take pressure off schools and local governments. . . . Each 1 percent across-the-board pay raise for all State and local employees (teachers, city, higher education, state, etc.) equates to approximately $130 million annually.”
*** Office of the Governor, January 6, 2009: “Governor Mitch Daniels today proposed a State budget for the next biennium that would be honestly balanced, include no tax increases and protect the State's reserves.  Daniels said public safety, K-12 education, Medicaid and child protection top his list of funding priorities.  . . . The governor said he would maintain Indiana State Trooper levels and provide funding needed for Indiana's increasing prison population; maintain funding levels for K-12 education; maintain current services for all eligible Medicaid recipients; and keep the same level of child protection case workers and services.  But, among cuts that will be proposed, the governor said some of his own initiatives will be delayed or postponed for the time being. Those include completion of funding for full-day kindergarten and the Hoosier College Promise program, which would provide two years of free tuition at Ivy Tech or the equivalent amount at another Indiana college or university.  Most agency budgets also will be reduced by eight percent as compared to the FY09 budget appropriation. Daniels provided a summary of the proposed budget that is projected to close with reserves of $1.3 billion, the same as projected for the current fiscal year.”  (Note: A balanced budget must be passed by April 29.)
*** Office of the Governor, January 13, 2009:  In his State of the State Address, Governor Mitchell E. Daniels Jr reviewed details of the budget proposal he had submitted and said “one area for special care is public education.. . . . One dollar per year health insurance for school board members? That's not right – put the children first. A superintendent and staff for 800, 600, 500 students but only one choice of foreign language? That's not right – put the children first. Three, four, five school bureaucracies in counties that do not provide modern science labs, Advanced Placement courses, or licensed physics teachers? No, put the children first. The goal is smaller schools, smaller classrooms, more and better paid teachers, better academic opportunities for our kids, through lower overhead.  Superintendent Bennett and I have submitted legislation to you to move tax dollars out of the back office and into the classroom. . . . But, let's state the case more positively. We have here a huge opportunity; with each single percentage point of improvement, we could hire two thousand more teachers. I invite every legislator to help us shape an effective new approach that sends many more education dollars into the classrooms where our kids' futures are being determined.  There is something else we must do that will not cost a single new dollar. Education cannot begin until disorder and chaos ends, so I ask this Assembly to approve the bill I have sent you to reestablish complete, unquestioned discipline in the schools of our State.”
*** Office of the Governor, January 29, 2009:  “Governor Mitch Daniels today said the goal for federal economic stimulus funds that come to Indiana will be to keep and put more Hoosiers to work and do it quickly. . . . Of the $4 billion to $5 billion expected to come to Indiana, $1.5 billion to $2 billion will be for capital projects. . . . In addition, more than $1 billion from economic stimulus funds are likely to go directly to Indiana K-12 schools.”
*** Courier Journal (Louisville KY and Southern Indiana), March 6, 2009: “Indiana’s tax collections in February were 10 percent lower than last year and $42 million less than projected, pushing the State’s budget farther out of balance as lawmakers try to craft the State’s next spending plan. . . . So far this fiscal year, which ends on June 30, income tax revenue is 5 percent below the 2008 level. Only twice in the last 30 years have individual income tax revenues finished the year 5 percent or more below prior year collections, the Office of Management and Budget said today. . . The new numbers . . . make the job of writing the next budget more difficult. “
*** 6News, The Indy Channel, March 9, 2009:   “Dismal unemployment numbers released last week renewed debate at the Statehouse on Monday about how best to protect Indiana's future.  Indiana's unemployment rate jumped a full point to 9.2 percent in January, hitting its highest mark in 25 years, the Department of Workforce Development said Friday.”
*** State Budget Agency, April 6, 2009:  The monthly revenue report for March 2009 State tax collections showed that “for the fourth consecutive month, tax collections have lagged behind the most recent forecast.  Additionally, the magnitude of the declines compared to the prior year has dramatically increased in the last four months. . . . Total revenue collections were $821 million, 15% below collections for the same period last year. . . . Total collections were $87 million (9.5%) below the December 2008 forecast.  Year to date collections are 5% below the prior year.  . . . Sales tax collections have never declined compared to prior year for this many months in succession.  Year to date (sales tax) collections are 3% below last year. . . . Year to date individual income tax collections are 7% below prior year.  If collections ended this fiscal year 7% below last year, it would be the largest decline in income tax collections compared to prior year in State history.”
*** Indianapolis Star, April 30, 2009:  “Lawmakers failed Wednesday night to pass a new two-year State budget.  Governor Daniels must call them into special session, but the only time-table requirement is that a budget be finished by the end of the fiscal year, June 30. . . . Senate President Pro Tempore David Long, R-Fort Wayne, said that before the governor orders the special session, he should lay out a budget, complete with a school funding formula, as a starting point.”
*** Indianapolis Star, May 15, 2009:  “The FBI and Indiana Secretary of State are investigating the handling of high-risk investments by the State teachers union that have left its insurance fund teetering on the brink of bankruptcy, sources close to the investigations said.   The Indiana State Teachers Association's Insurance Trust is facing a potential $67 million deficit. The trust pays for long-term disability benefits to teachers in 90 of the State's nearly 300 school corporations and health insurance in 30 districts.”
*** Journal-Gazette, Fort Wayne, May 28, 2009:  “In just over a month, tax collection projections for Indiana plummeted nearly $1.1 billion, according to a revised revenue forecast given to lawmakers and administration officials Wednesday (May 27).
*** Office of the Governor, June 1, 2009:  In his budget address, Governor Mitch Daniels said that “As you know, the legislature didn't pass a budget before they adjourned a month ago. . . .Since my first submission in January, State revenues have slipped even further, an unprecedented 8 percent below last year. . . . I have modified further the tight budget I proposed four months ago.  . . . Total State spending would be reduced by 2 1/2 percent.  Many good ideas will just have to wait.   Across State government, nothing, and I mean nothing, goes up.  When your income drops by 8 percent, you can't increase your spending, on anything. . . . There is only one exception.   Public education, as well as student financial aid, would get a significant increase.  Every school would receive more per student than it did this year.  And if by some happy chance, State revenues turn out better than projected, I'm proposing that one of every two extra dollars go automatically to our schools, with the rest going to our savings account.   Let's hope it happens.”  (NOTE: The Legislature reconvened for a special session on June 11.)
*** Indianapolis Star, June 30, 2009: “Indiana’s lawmakers passed a $27.8 billion two-year budget Tuesday (June 30) that supporters touted as a triumph in a recession but critics said came at the expense of students in urban and rural districts. . . . Gov. Mitch Daniels signed the budget into law at 8:05 p.m., less than four hours before the previous budget expired, averting a government shutdown. . . . Overall, the plan gives public schools a 1.1 percent increase in State funding in 2010 and a 0.3 percent increase in 2011. . . . The budget keeps $1 billion in Indiana's reserves.”
*** Indianapolis Star, July 6, 2009: “Behind the glow of a State funding increase for education -- Indiana was one of the few States in the nation to grant one this year -- lies this hard fact: The schools attended by the poorest children in the State took it on the chin. . . . Districts defined as urban by the State Department of Education will see an overall increase of 0.19 percent in 2010, less than any other category of schools (i.e., falling enrollments). The funding for suburban school districts, in contrast, will jump by 1.49 percent in 2010. And charter schools, predicted to have an enrollment growth of 19 percent, got a corresponding 19.2 percent increase in funding. . . . Indianapolis Public Schools, because its enrollment is dropping, loses $28 million -- a 2.8 percent drop in 2010 and 4.3 percent in 2011. . . . Rural school districts also are hard hit. . . . There is no doubt there is a disproportionate negative impact on students of color and low-income students, based on this (school funding) formula,’ said Mark Russell, director of education for the Indianapolis Urban League. ‘That's not to impute anyone's motives, but the effect is very clear.’”
*** Indiana Auditor of State, July 17, 2009: “Indiana’s Auditor Tim Berry today announced that through strong fiscal management the State of Indiana has maintained its financial reserve balance. Budgetary expenses were expected to increase by 3.9% during 2009, but were held to just one-half of 1 percent (.5%). . . . State reserves inched up $26 million at fiscal year end to $1.329 billion, and are expected to drop to $1 billion by June 2011 under the budget recently passed by the General Assembly. . . This year alone, Indiana’s revenues fell $963 million from 2008 levels and were $1.2 billion less than originally expected at the beginning of the year. The 2010 budget is calling for a 1.6% increase in revenue during the coming year. . . . Utilization of federal stimulus dollars prevented Governor Daniels from taking more drastic steps to reduce spending in order to balance the budget.”
*** U.S. Bureau of Labor Statistics, August 21, 2009: Indiana’s seasonally adjusted unemployment rate for July 2009 was 10.6 percent -- up from 6.0 percent in July 2008. Indiana is one of the States with statistically significant unemployment rate changes during that period.
_________________________________
Daniels Announces Actions to Reduce State Spending Following Revenue Forecast, Office of the Governor, December 11, 2008 -- Scroll down:
http://www.in.gov/gov/2922.htm

Daniels Suggests Indiana Public Employees Forego 2009 Pay Raises, Office of the Governor, December 23, 2008:
http://www.in.gov/portal/news_events/33877.htm

Governor Outlines Proposal for Next Budget, Office of the Governor, January 6, 2009:
http://www.in.gov/portal/news_events/34086.htm
*** The 2009-2011 proposed budget presented on January 8 by the Office of Management and Budget is available at:
http://www.in.gov/sba/2364.htm

State of the State Address, Office of the Governor, January 13, 2009:
http://www.in.gov/gov/09stateofstate.htm

Daniels:  State Will Be Prepared for Federal Economic Stimulus Funds, Office of the Governor, January 29, 2009 -- Scroll to January 29:
http://www.in.gov/newsroom.htm

Indiana’s website on the use of ARRA funds, launched March 3, 2009, is at:
http://www.in.gov/gov/INvest.htm

Indiana Tax Revenue Falls Short of Projections, Courier Journal (Louisville KY and Southern Indiana), March 6, 2009:
http://www.courier-journal.com/article/20090306/NEWS0204/90306017
*** Monthly revenue reports are available at:
http://www.in.gov/sba/2485.htm

Lawmakers Squabble Over How To Reverse State Jobless Rate, 6 News, The Indy Channel, March 9, 2009:
http://www.theindychannel.com/news/18891694/detail.html#-

Monthly Revenue Report of March 2009 State Tax Collections, April 6, 2009:
http://www.in.gov/sba/2485.htm

Governor Prescribes “Reality” for Lawmakers, Indianapolis Star, April 30, 2009 (about the failure to pass a budget):
http://www.indystar.com/article/20090430/NEWS05/904300476

Funds Deficit Raises Questions: Probes Focus on Investments by Teachers Union, Indianapolis Star, May 15, 2009:
http://www.indystar.com/article/20090515/LOCAL/905150357
/Feds+investigate+state+teachers+union+fund

$1 Billion Shortfall Forecast, Journal-Gazette, Fort Wayne, May 28, 2009:
http://www.journalgazette.net/article/20090528/LOCAL/305289995

Text of Governor Daniels’ Budget Address, Office of the Governor, June 1, 2009:
http://www.in.gov/portal/news_events/39665.htm
*** Budget recommendations for the 2009 Special Session are at:
http://www.in.gov/sba/2447.htm

Governor Signs 2-Year State Budget, Indianapolis Star, June 30, 2009:
http://www.indystar.com/article/20090630/NEWS05/90630050/Governor+signs+2-year+state+budget

Education Budget Higher Overall, but Indianapolis Public Schools and Other Districts See Cuts, Indianapolis Star, July 6, 2009:
http://www.indystar.com/article/20090706/LOCAL/907060353
/Poorest+students+losing+the+most

Spending Constraints Maintain Indiana’s Reserves (FY 2008-2009 Close-Out Statement), Indiana Auditor of State, July 17, 2009:
http://www.in.gov/sba/2538.htm

Regional and State Employment and Unemployment Summary, U.S. Bureau of Labor Statistics, August 21, 2009 (Note: The data at this link are updated monthly):
http://www.bls.gov/news.release/laus.nr0.htm


Iowa: From Large Cash Reserves to Downturns and Reductions
Compiled from several sources named in the text and in the links below.

*** Office of the Governor, January 15, 2008:  “Today, Governor Chet Culver delivered his Condition of the State Address to the Iowa General Assembly, declaring, "The condition of our State strong!  The Governor cited Iowa's $600 million cash reserves, the largest in State history, as well as Iowa's booming bio-economy as evidence of the strength of Iowa.”
*** Office of the Governor, May 6, 2008:  “Today, Governor Chet Culver signed House File 2663, which establishes Iowa’s sales tax at 6% and uses the extra 1 cent on every dollar spent in Iowa for school infrastructure funding. . . . House File 2663 creates a dedicated funding stream for school infrastructure in Iowa.  The legislation sets the funding to be distributed on a per-pupil basis, ensuring all school districts receive equal funding.  By setting the sales tax at 6%, school districts stand to receive an extra $200 per pupil on average for school modernization and construction.”
*** Office of the Governor, October 9, 2008:  Governor Chet Culver issued a “statement after today’s meeting of the Revenue Estimating Conference. The revised revenue estimates for the 2009 fiscal year were $38 million less than originally projected, and revenue growth for the 2010 fiscal year was projected to be 0.1 percent. . . . ‘We have practiced strong fiscal management and good financial operations in Iowa, which has led to reserve funds of more than $600 million and an increase in the State’s bond rating.  Because we were prudent with our finances, revenue reductions can be absorbed in our year-end budget balance.’”
*** Office of the Governor, December 12, 2008:  “Governor Chet Culver will announce steps next week to reduce State spending by an additional $60 million, which represents one percent of the State’s General Fund revenues.  The Governor made his announcement in response to new projections made this morning by the Revenue Estimating Conference (REC).  The REC is estimating that State revenues for FY 2009 will be $99.5 million below estimates made in October; revenue estimates for FY 2010 are $132.6 million lower.”
*** Office of the Governor, January 28, 2009:  “Governor Chet Culver and Lt. Governor Patty Judge today submitted their $6.2 billion budget for fiscal year 2010. . . . ‘In recent months, we have reduced state government spending by nearly $180 million in order to maintain a balanced budget,’ said Governor Culver.  ‘Those steps addressed our revenue declines during the current fiscal year, but more cuts are necessary.’ . . .  The proposal recommends further budget cuts – rather than tax increases – to help meet the challenges of declining State revenues. . . . While more than 80% of State programs will be subject to the reduction, the Governor has identified . . . key priorities, which will be exempted from its full effects. . . . (Among these are) Education: appropriations for teacher quality and pre-school education and a 2-percent allowable growth, and . . .  Human Services: appropriations for Medicaid, Hawk-I, Child and Family Services."
*** Radio Iowa News, Des Moines, February 26, 2009:  “Governor Chet Culver says he will sign into law the two percent increase in general State aid to schools which legislators endorsed this week.   State law requires legislators and the governor to set the main, per student payments to K-through-12 schools more than a year in advance, to give administrators time to plan and this increase would take effect in the academic year which begins in the fall of 2010.  Culver says two percent is as much as the State can afford in this economic downturn. . . . Culver says Iowa's public schools wouldn't have gotten two percent without money in the federal economic stimulus that's aimed at education. . . . The governor and legislators have not yet addressed state funding for the school year which begins this fall, however.”
*** Office of the Governor, March 16, 2009:  “Governor Chet Culver announced the launch of Recovery.Iowa.Gov, a website on what the American Recovery and Reinvestment Act (ARRA) will mean to Iowans.  Iowa is estimated to receive approximately $1.9 billion in one-time direct assistance from President Obama’s federal economic recovery initiative.”
*** Office of the Governor, March 17, 2009:  “Governor Chet Culver has signed legislation to implement de-appropriations he requested to reduce State spending, while at the same time protect public safety and workforce development programs. . . . House File 414, which was signed into law yesterday by the Governor and portions of which go into effect immediately, does the following: (a) de-appropriates $37.5 million in funding for a proposed new State office building in Des Moines; (b) restores current fiscal year funding to the Departments of Corrections, Public Safety, and Workforce Development after last year’s 1.5% budget reduction; and (c) provides emergency funding to the Department of Natural Resources for losses suffered to the Fish and Game Trust Fund as a result of the last year’s flooding and for the completion of cabins at Honey Creek.  Governor Culver called for the de-appropriation of funding for a State office building in early December when he announced the need to cut State spending by $77 million.”
*** Office of the Governor, March 24, 2009:  “Tomorrow, Governor Chet Culver will sign Senate File 197, which will modernize Iowa’s unemployment insurance system to extend benefits for Iowans without work, and provide new funding to help job seekers find employment.   The bill – which passed the legislature with wide bipartisan support -- will make Iowa the first State in the nation to comply with new federal guidelines under the American Recovery and Reinvestment Act designed to help job seekers during this national economic recession.”
*** Office of the Governor, April 3, 2009:  “Governor Chet Culver today released his revised budget recommendation for both FY 2009 and FY 2010. The recommendation required by State law due to revised revenue projections, calls for a 7.9% budget reduction for many State programs next year, and utilizes more than $674 million in funds from the American Recovery and Reinvestment Act to offset deeper cuts. . . . Today’s revised budget proposal was triggered by Iowa Code after the Revenue Estimating Conference (REC) reduced its December projection of General Fund revenues by $129.7 million in FY 2009 and $269.9 million in FY 2010. The REC estimates that corporate income tax receipts will fall 7.6 percent, personal income tax receipts will fall 1.6 percent, and tax refunds will increase 8.0 percent in the coming fiscal year. . . . The revised budget recommendation totals $5.928 billion for FY2009 and $5.896 billion for FY 2010. The FY 2010 budget recommendation is $301.6 million lower than the budget recommendation submitted in January.”  Among the FY 2009 recommendations are: Use $43.2 million in federal ARRA Education Stabilization funds to fully fund the appropriation for the school aid formula; and use $110 million of Federal Medical Assistance Percentage funds to fully fund Medicaid. . . .  Among the FY 2010 recommendations are: Use $232.9 million of ARRA Education Stabilization funds to maintain school aid funding at the previously set 4 percent allowable growth; use $145 million of Federal Medical Assistance Percentage funds to fully fund the Medicaid estimate; and use $56 million of ARRA Education Stabilization funds to avoid severe General Fund cuts for Regents institutions and Community Colleges.
*** Office of the Governor, April 26, 2009:  Governor Culver issued a Statement on “the work and accomplishments of the 2009 session of the Iowa General Assembly, which was highlighted by the creation of I-JOBS . . . (which) . will help communities by taking important steps in flood mitigation, investing in Iowa’s public infrastructure, and creating thousands of good-paying jobs for countless Iowans who need them across the State. . . . (In addition to discussing other accomplishments, the Governor said that) we are using both State resources and federal stimulus funds to keep our promise to Iowa’s schools to ensure our children receive a quality education and keep teachers at work in our classrooms. We will continue to support our community colleges, regent institutions and private colleges. And we will provide $100 million to the University of Iowa to allow them to rebuild more than a dozen buildings on campus destroyed by last summer’s floods. . . . We are fully funding Medicaid to protect the most vulnerable Iowans during these difficult economic times. And more than 30,000 additional children will now have access to health care as Iowa strives to become the first state in the nation to provide all children with quality, affordable health care. . . . We not only passed a balanced budget – without raising taxes – but also kept $450 million in our cash reserves, one of the highest levels in our state’s history.”
*** Chicago Tribune, June 11, 2009:   Iowa “legislators cut programs throughout the budget this year, and earlier this week a panel of lawmakers set the stage for further reductions next year by trimming the Legislature's own budget by 10 percent.  That means freezing pay for all legislative employees, cutting back on travel and reducing the number of days for which legislators receive expense payments. . . In all, legislators said the cutbacks would save about $4 million.”
*** Office of the Governor, July 2, 2009:  “Gov. Chet Culver signaled Thursday that more State spending cuts and government streamlining likely will be coming as early as this fall to meet the budget challenges posed by a prolonged recession. . . . Culver said lower-than-expected revenues and other factors could result in a shortfall of about $58 million for the fiscal year that ended Tuesday (June 30).  But the first-term Democrat said whatever deficit emerges could be erased with a $45 million ending balance and up to $50 million he has the authority to temporarily transfer from the State’s cash reserve.  ‘I am very confident that we are going to balance the budget, close the books on ’09 without having a special (legislative) session,’ the governor told reporters.
*** Office of the Governor, July 17, 2009:  “Governor Chet Culver and Lt. Governor Patty Judge announced today that the Governor’s Office of Drug Control Policy has awarded nearly $5 million in American Recovery and Reinvestment Act grants to 38 criminal justice projects statewide.  The awards, as part of the federal Byrne Justice Assistance Grant (JAG) program, primarily will support personnel in drug enforcement, treatment and prevention initiatives that address priorities outlined in Iowa’s Drug Control Strategy.”
*** Office of the Governor, July 21, 2009:  “Governor Chet Culver and Lt. Governor Patty Judge today announced $475,200 has been awarded to 18 Iowa organizations to preserve 323 jobs in the cultural arts across Iowa. . . . The awards are supported by funding from the American Recovery & Reinvestment Act (ARRA) of 2009.”  A list of Iowa arts organizations receiving ARRA funding is included with this announcement.
*** Office of the Governor, August 3, 2009:  “With the first month of Fiscal Year 2010 now complete, State tax receipts in Iowa for the month of July are 1.2 percent above the same time last year and are ahead of projections made by the Revenue Estimating Conference (REC), which estimated an annual growth rate of -0.1 percent.  Gross general fund revenue receipts for July totaled $412.1 million, or $4.7 million above the same period of time last year.”
*** Iowa House Republicans, August 20, 2009:  Iowa Republican leaders launched  “the beginning of a four-month effort to outline a new program called ‘Iowa Republicans: Real Solutions for Iowa’s Families.’ . . . The Iowa Family Budget initiatives are: (a) constitutional amendment to limit State spending to no more than 99% of State revenue — no more legislative loopholes to avoid responsible budgeting and overspending; (b) require a 2/3 supermajority vote of the Legislature to approve new State borrowing — Iowans need greater protection against runaway state debt and bipartisan agreement should be required before the State saddles taxpayers with debts like the $1.7 billion Governor Culver gave us this year; and, (c) sunset authorization of every state budget program to ensure no state program continues indefinitely without a specific review and reauthorization by the Governor and Legislature.”
*** U.S. Bureau of Labor Statistics, August 21, 2009:  Iowa’s seasonally adjusted unemployment rate in July 2009 was 6.5 percent -- up from 4.1 percent in July 2008.  Iowa is one of the States with statistically significant unemployment rate changes during that period.
*** Des Moines Register, August 28, 2009:  “Big agencies like Iowa's Department of Human Services are likely places a team of consultants will scour for budget-cutting ideas in the next four months, the president of the consulting firm hired by Gov. Chet Culver said Thursday.
 
Eric Schnurer, president of Public Works Inc. of West Chester, Pa., said the biggest agencies are often the ones in which savings and inefficiencies are easiest to identify. . . . . Schnurer said he and his team of eight to 10 consultants will have their work cut out for them: Culver has given them four months to do a complete review of spending across state government. The process, he said, usually takes about eight months.”
_________________________________
Condition of the State Address, Office of the Governor, January 15, 2008:
http://www.governor.iowa.gov/news/2008/01/15_1.php

Governor Culver Signs Legislation to Strengthen Iowa Schools, Office of the Governor, May 6, 2008:
http://www.governor.iowa.gov/news/2008/05/6_2.php

Statement from Governor Culver on Revenue Estimates, Office of the Governor, October 9, 2008:
http://www.governor.iowa.gov/news/2008/10/9_1.php
*** The October 2008 Revenue Estimate Reports is available at:
http://www.dom.state.ia.us/state/REC/rec_quarterly.html

Governor Culver to Announce $60 Million in Additional State Spending Reductions Next Week, Office of the Governor, December 12, 2008:
http://www.governor.iowa.gov/news/2008/12/12_4.php
*** The  December 2008 Revenue Estimate Report is available at:
http://www.dom.state.ia.us/state/REC/rec_quarterly.html

Governor Culver Releases FY 2010 Budget, Office of the Governor, January 28, 2009:
http://www.governor.iowa.gov/news/2009/01/28_1.php

Governor Will Sign $60 Million Increase in State Aid to Schools, Radio Iowa News, Des Moines, February 26, 2009:
http://www.radioiowa.com/gestalt/go.cfm?objectid=B50239FA-5056-B82A-
373D171C7A90BD08

Iowa’s website on the State’s uses of American Recovery and Reinvestment Act funds, launched on March 16,  is at the below link:
http://recovery.iowa.gov/

Governor Signs Legislation To Cut Spending, Protect Public Safety, Office of the Governor, March 17, 2009:
http://www.governor.iowa.gov/news/2009/03/17_4.php

Governor Culver to Sign Bill Modernizing Iowa’s Unemployment Insurance System, Office of the Governor, March 24, 2009:
http://www.governor.iowa.gov/news/2009/03/24_1.php

Governor Culver: During Tough Times, We Must Be Fiscally Responsible -- Revised FY10 Budget Proposal Calls for 7.9% Cut to Many Programs, Office of the Governor, April 3, 2009:
http://www.governor.iowa.gov/news/2009/04/3_2.php
*** The revised budget recommendations, dated April 3, 2009, are available:
http://www.dom.state.ia.us/

Governor Culver: We Are Meeting the Challenges Head-On, Office of the Governor, April 26, 2009 (statement on adjournment of 2009 General Assembly):
http://www.governor.iowa.gov/news/2009/04/26_1.php

Lawmakers Say Iowans Will Accept Budget Cuts, Chicago Tribune, June 11, 2009 (includes info on  trimming the Legislature’s costs):
http://www.chicagotribune.com/news/chi-ap-ia-iowabudget,0,1560250.story

Culver: Spending Cuts Likely, but Iowa Budget OK for Now, Office of the Governor, July 2, 2009:
http://www.gazetteonline.com/apps/pbcs.dll/article?AID=/20090702/NEWS/707029897/1006

Governor Culver:  Federal Recovery Helps in Fight Against Drugs and  Crime, Office of the Governor, July 17, 2009:
http://www.governor.iowa.gov/news/2009/07/17_1.php

Culver, Judge Announce $475,200 to Preserve Arts Jobs in Iowa, Office of the Governor, July 21, 2009:
http://www.governor.iowa.gov/news/2009/07/21_1.php

Iowa Revenue for First Month of Fiscal Year is 1.2 Percent Above Last Year, Office of the Governor, August 3, 2009:
http://www.governor.iowa.gov/news/2009/08/3_1.php

Republicans Announce “Iowa Family Budget Initiative,” Iowa House Republicans, August 20, 2009:
http://iowahouserepublicans.com/republicans-announce-“iowa-family-budget-
initiatives”

Regional and State Employment and Unemployment Summary, U.S. Bureau of Labor Statistics, August 21, 2009 (Note: The data at this link are updated monthly):
http://www.bls.gov/news.release/laus.nr0.htm

State Budget Review to Scour Big Agencies, Des Moines Register, August 28, 2009:
http://www.desmoinesregister.com/article/20090828/NEWS10/908280354
/-1/BUSINESS04


Kansas:  Steady Erosions
Compiled from several sources named in the text and in the links below.

*** Office of the Governor, August 20, 2008:  “The Comparison Report details the revised FY 2008 budget and the FY 2009 budget approved by the 2008 Legislature. . . . From the State General Fund the Legislature reduced the Governor’s proposed FY 2009 expenditures by $11.6 million. From all funding sources the Legislature reduced expenditures by $114.9 million. Of that amount, $15.0 million was for a Human Services Management System, $10.0 million for premium assistance, $4.0 million was cut from financial aid for postsecondary students, and $4.2 million was removed for the Financial Management System. The approved budget fully funds the expected costs of the school finance formula and the expenditure projections for human service caseloads. The Governor proposed funding to begin a new approach to State employee compensation, and the Legislature adopted the proposal. New revenues to the Children’s Initiatives Fund were targeted by the Governor to fund expanded early childhood programs and, while the Legislature did not approve the complete proposal, the early childhood grant program was funded.”  (The budget total for FY 2009 from all funds was 13,487,095,217 -- as compared with 13,156,352,216 in FY 2008.)
*** Kansas Division of the Budget, November 7, 2008:  “Estimates for the State General Fund (SGF) are developed using a consensus process that involves the Legislative Research Department, Division of the Budget, Department of Revenue, and three consulting economists from State University. . . .The Consensus Group met on November 4, 2008, and decreased the estimate for FY 2009 and developed the first estimate for FY 2010.  For FY 2009, the estimate was decreased by $211.4 million, or 3.5 percent, below the previous estimate (made in April 2008).  The initial estimate for FY 2010 is $5.782 billion, which is virtually unchanged from the newly revised FY 2009 figure. . . . The possibility remains that the relative health of certain key sectors of the State’s economy, including aviation manufacturing and energy, could enable Kansas to experience a milder contraction than the country as a whole.”
*** Topeka Capital-Journal, January 13, 2009:  “Gov. Kathleen Sebelius’ staff today outlined a plan for closing a $945 million gap in the current and next State budgets by spending down the State treasury, making targeted cuts in State government programs, delaying tax reductions, and halting repayment of some debt. . . . The State faces a $186 million shortfall in the current 2009 budget and a projected deficit of nearly $1 billion in 2010, assuming correction action wasn’t taken.  (Duane Goossen, the governor’s budget director) said Sebelius is proposing to the Legislature a strategy that freezes State appropriations to K-12 public schools at the level approved by the 2008 Legislature.  However, that recommendation would deny K-12 schools about $165 million that would have been earmarked for public school districts this year and next.  Sebelius’ proposal also would minimize disruption of services to the poor, disabled and elderly, Goossen said.  The State’s public universities would take a significant budget hit in the governor’s budget. She also wants to curtail payments to local and county units of government. For example, $27 million in liquor taxes collected by the State and normally transferred to local government would be kept by the State to balance the proposed budget in 2010. . . . Bills related to the current 2009 fiscal year will be introduced in the House and Senate, and hearings on the budget in both chambers are scheduled to start Wednesday (January 14).”  Note:  The governor will await reports on January tax revenue before finalizing a bill for the 2010 budget.”
*** Office of the Governor, February 17, 2009:  “Governor Kathleen Sebelius has signed the 2009 budget bill and vetoed several components, solving the current budget gap and protecting public schools from the drastic cuts proposed by the Kansas House of Representatives.  ‘While I agree with the Legislature that reducing the 2009 budget by more than $300 million is appropriate, I believe that with so much of the school year already behind us, the cuts proposed to public schools are too deep,’ Sebelius said. ‘To provide schools better certainty in the few remaining months of this school year, I am vetoing the cuts to special education and implementing the Senate’s bipartisan recommendation of a much lesser rescission to school funding.  Additionally, because the purpose of a rescission bill is to limit and lower spending, I am also vetoing more than $9 million in spending increases the legislature included in this bill.’” This announcement includes information on the Governor’s areas of veto.
*** Office of the Governor, February 27, 2009:  “Governor Kathleen Sebelius has delivered to the legislature amendments to her 2010 budget recommendations that take into account resources available in the Federal Recovery Act. . . .. . . ‘These stabilization funds also provide us the resources to follow through on our shared commitment, made last session, to open the doors of affordable health care to 8,000 more Kansas children and provided needed assistance to thousands of unemployed Kansans struggling in these difficult economic times.  Therefore, I am amending my FY 2010 budget recommendations to prevent harm to our schools, avoid job losses and protect vulnerable Kansans. . . . In order to draw down these recovery funds and stabilize our State General Fund, the Kansas Legislature must meet the minimum federal requirements, including: (a) maintain funding for K-12 schools at FY2009 levels and restore higher education funding to FY2008 levels; this will allow us to access $367 million in recovery funds to stabilize these areas; (b) prevent cuts to special education; this will allow us to access $107 million in recovery funds to stabilize this program; (c) maintain current Medicaid eligibility standards; this will allow us to access $430 million in recovery funds to stabilize this program; and (d) prevent cuts to public safety or other government services; this will allow us to access $81 million in recovery funds to stabilize these services.”
*** Wichita Eagle, April 1, 2009:  Passed by the Kansas Senate and House, on March 31, “a 2010 budget compromise that includes modest public education cuts and restores some money to community corrections programs is on its way to the governor. . . . The bill spends $5.75 billion in State general funds (6.8 percent less than this year) and $13.01 billion in all funds. The plan is intended to leave $172 million, or about 3 percent, in State coffers at the end of the 2010 fiscal year. . . . K-12 EDUCATION:  The budget cuts public school funding by 0.8 percent, or $33 per pupil. . . . Additionally, special education is cut by $4.5 million.  HIGHER EDUCATION:  Colleges and universities will see $20.2 million, or 2.5 percent, less from the State.  With the addition of federal stimulus money, the regents system will receive $10.2 million more than the current budget year, or a 1.25 percent increase. . . . HEALTH CARE FOR CHILDREN:  The budget adds $1.2 million to expand the State Children's Health Insurance Program to families making 250 percent of the federal poverty level, or about $53,000 for a family of four. The additional money will offer coverage to about 8,000 children.”
*** Office of the Governor, April 13, 2009:  “Governor Kathleen Sebelius has signed the 2010 State Budget while calling on the legislature to enact her proposals to save the State millions of dollars -– money that can be used to guard against deeper cuts to public schools and safety net services.”  Referring to her January budget and subsequent amendments reflecting revenue declines, the Governor said, ‘Unfortunately, the legislature chose not to take action on a number of these cost saving measures. Consequently, the additional cuts to education and services the legislature has imposed in this bill give me pause, particularly when they chose to leave millions of dollars in revenue on the table that would have made these cuts unnecessary. Furthermore, the American Reinvestment and Recovery Act provides Kansas an opportunity to protect our investment in our children’s education. Because there is still uncertainty regarding the minimum threshold of funding a State must maintain to access these funds, we should not put this funding in jeopardy.  I encourage the legislature to reconsider the revenue enhancements they have chosen to ignore, before further slashing education and other vital State services.  Therefore . . . I hereby return Senate Substitute for House Bill No. 2354 with my signature approving the bill, except for the items enumerated below.”  Thirteen vetoed items are explained at the end of the news release.
*** Kansas Legislative Research Department, April 17, 2009: This report states that “the Consensus Group met on April 17, 2009, and decreased the overall estimate for both fiscal years (FY 2009 and FY 2010) by a combined $516.9 million, relative to the previous estimate made in November. . . . The revised estimates incorporate the fiscal impact of all 2009 legislation previously signed into law by April 17; significant adjustments relative to the impact of new federal legislation; a downward revision in projected FY 2010 SGF interest earnings; and changes in expectations since November about the overall severity of the current recession.  When looking only at tax receipts, the downward adjustment for the two years is $744.2 million, the largest downward revision in the history of the Consensus Revenue Estimating Group.”
*** Office of the Governor, April 20, 2009: “In a letter to the Chair of the Senate Committee on Ways and Means and the House Chair of the Committee on Appropriations, the Governor wrote that “the items contained in this memo, (Governor’s Budget Amendment No 2) amend the revised FY 2009 and new FY 2010 budget that I submitted to you in January 2009.  The items detailed here reflect new issues that have arisen, caseload adjustments, or changes that can be made based on new information.”  Details on each amendment are shown.
NOTE:   On April 28, 2009, Kathleen Sebelius was confirmed as Secretary of the U.S. Department of Health and Human Services, and Lieutenant Governor Mark Parkinson became the 45th Governor of Kansas.
*** Office of the Governor, April 30, 2009:   In addressing a joint session of the Kansas Legislature, Governor Mark Parkinson said, among other things, that “our current deficit is $328 million.   Filling that deficit will not be easy..  The number is too large to fill it solely with additional budget cuts.  Those cuts, on top of the cuts we have already imposed, would jeopardize critical State programs. . . . Fortunately, there is a middle ground.  We need to share the sacrifice and address the deficit with both responsible budget cuts and revenue enhancements. . . . On the revenue side, there are about $250 million in enhancements that we can make that won’t raise a single person’s taxes.  These include delaying tax cuts, decoupling and recognizing gaming revenue.  The good news is that these revenue enhancements don’t require us to raise anyone’s taxes.  Tax cuts would be delayed, but no business or person would see their taxes increase.”
*** Topeka Capital-Journal, May 9, 2009:  “The Kansas Legislature adjourned Saturday morning following adoption of bills composed to eliminate a $328 million deficit and balance a State budget hobbled by economic recession. . . . Democrats and moderate Republicans formed coalitions in the House and Senate to adopt final pieces of the budget-balancing plan, including an extra 2.75 percent across-the-board spending cut and a $61 million tax revenue bill.  In all, the Legislature authorized across-the-board cuts in State agencies of 5.25 percent during the session in response to a crash in state tax revenue. . . . All of this followed two previous rounds of cuts during this session to the current 2009 budget and in the first draft of the 2010 budget. . . . Kansas K-12 public schools had already lost almost $33 million in base State aid and special education funds in previous rounds of cutting, and the latest budget-balancing plan takes away an additional $83 million.  Base State aid, set at $4,400 per student last fall, will drop by $116 for the next school year.  State universities, community colleges and vocational schools would see their funding cut by an additional $22 million.
*** Office of the Governor, May 28, 2009:  “In anticipation of lower than expected revenue receipts and the resulting budget shortfalls for fiscal years 2009 and 2010, Governor Mark Parkinson released a statement. . . . We have a strategy in place to manage our budget shortfall through the end of the current fiscal year on June 30th.  This strategy includes delaying some education payments a few weeks and speeding up the Department of Revenue’s tax amnesty program. After taking these steps, we will finish the current fiscal year with a positive ending balance and meet our financial obligations without legislative action.  However, we will begin Fiscal Year 2010 with less money than we had planned.  This means further reductions to the 2010 budget will likely be necessary.
*** Office of the Governor, June 8, 2009:  In a web address, Governor Parkinson said that “right after the legislative session ended. we got some news in May that our revenue in May was over 100 million dollars less than we thought it would be and I will tell you that is a very bad report.  A normally bad report would be 20 to 30 million dollars short. . . . So we’ve got some tough decisions ahead of us. . . . I will consult with legislative leaders, with folks from Kansas all across the State with our leadership team and with our cabinet and we will make calm and responsible decisions.  There are folks that are out there panicking right now that are saying that we should make very deep cuts right now.  I think that would be a mistake. . . . We have critical State services that are provided. . . . . I will make the cuts when we need to, but I won’t make the cuts until we absolutely have to.”
*** Office of the Governor, July 2, 2009:  In his web address on July 2, Governor Parkinson said, in part, that “after passing a balanced budget we suddenly found out that we had more work to do, and it looks like in June we’ll receive less money than we thought we would, so we’re going to have to make cuts that are even beyond the 100 million dollar cuts that we learned about in May. . . . So we’ve got at least 135 million dollars in budget cuts that we’re going to need to make to get our budget back in balance.  It’s now my responsibility to do that as governor, because the legislature is now out of town -- the session is over. So, I’ve reached out to leadership in both parties, the leaders of appropriations committees, the speaker of the house, the president of the senate, all those folks.  I’ve also talked to our cabinet secretaries, leaders of education and in social services, and we’re in the process of making the very difficult 130 or 135 million dollars in cuts that need to be made.”   (NOTE:  State law allows the Governor to make cuts to avoid a budget shortfall. -- although a few may require approval when the legislature convenes in January 2010).
*** Hays Daily News, July 2, 2009:  This article explains the Governor’s new budget cuts, stating in part that “the State already sought to cope by delaying tax refunds and payments to school districts from June into July.  But paying the delayed bills -- and others due in coming weeks  -- also will require internal borrowing.  Parkinson plans to ask legislative leaders Monday (July 6) for permission to transfer $700 million from various funds into the State's main bank account to forestall cash crunches in coming months. . . . Aid to public schools was a natural target for additional cuts because it consumes more than half of the State's tax dollars.  Public schools already have lost about $124 million in state dollars.  Their base aid has dropped $153 per student, about 3.5 percent, to $4,280.  Parkinson's actions Thursday take an additional $39 million away from them.  State universities, community colleges and technical schools will lose an additional $15 million.”
*** Kansas City Star, August 1, 2009:  “Kansas has won at least a month's reprieve from more budget cuts because its July tax collections were close to expectations.  A preliminary report Friday (July 31) from the Department of Revenue said the State collected $344 million in taxes for the month.  That's about $5 million, or 1.5 percent, less than anticipated, . . . Tax collections in May and June had been significantly worse, and Kansas ended its last fiscal year June 30 with a $124 million shortfall in tax collections.  The State was forced to delay tax refunds and aid payments to public schools from June to July.  And Parkinson made $160 million in adjustments to the budget for the new fiscal year, including cuts in education funding. Those adjustments followed several previous rounds of reductions.”
*** Office of the Governor, August 14, 2009:  “The independent financial market research group, Standard and Poor’s, has awarded Kansas with an AA+ rating; similarly Moody’s has awarded Kansas with an AA1, signaling that Kansas has handled itself well in the face of revenue shortfalls and budget challenges.”  These ratings refer to the State’s status on bonds and borrowing.
*** U.S. Bureau of Labor Statistics, August 21, 2009:  The Kansas seasonally adjusted unemployment rate for July 2009 was 7.4 percent -- up from 4.3 percent in July 2008.  Kansas is one of the States with statistically significant unemployment changes during that period.
_________________________________
FY 2009 Comparison Report, Office of the Governor, August 20, 2008:
http://budget.ks.gov/comparis.htm

November 2008 Consensus Revenue Estimate, Kansas Division of the Budget, November 7, 2008:
http://budget.ks.gov/cre.htm

Update: Sebelius Offers Detail on Budgets, The Capital-Journal, Topeka, January 13, 2009:
http://cjonline.com/stories/011309/bre_budget.shtml
*** The FY 2010 Governor’s Budget Report is available at:
http://budget.ks.gov/gbr.htm

Sebelius Signs Budget Bill (for 2009), Softens School Funding Cuts (with vetoes), Office of the Governor, February 17, 2009;
http://www.governor.ks.gov/news/NewsRelease/2009/nr-09-0217b.htm

Governor Puts Forward Plan to Balance 2010 Budget, Office of the Governor, February 27, 2009:
http://www.governor.ks.gov/news/NewsRelease/2009/nr-09-0227a.htm

The Governor’s website on the ARRA and its opportunities for Kansas, launched on March 9, is at:
http://www.governor.ks.gov/recovery/

Kansas Lawmakers Send Budget Plan to Sebelius, Wichita Eagle, April 1, 2009:
http://www.kansas.com/news/local/story/755842.html
*** A summary of the FY 2010 budget figures, by agency, was published in The Kansan, Newton KS, on April 1:
http://www.thekansan.com/news/x180620006/A-summary-of-approved-
Kansas-budget-for-fiscal-2010

Kansas Lawmakers Send Budget Plan to Sebelius, Wichita Eagle, April 1, 2009:
http://www.kansas.com/news/local/story/755842.html
*** A summary of the FY 2010 budget figures, by agency, was published in The Kansan, Newton KS, on April 1:
http://www.thekansan.com/news/x180620006/A-summary-of-approved-
Kansas-budget-for-fiscal-2010

Sebelius Signs 2010 Budget and Calls for Further Savings, Spending Cuts, Office of the Governor, April 13, 2009:
http://www.governor.ks.gov/news/NewsRelease/2009/nr-09-0413b.htm

Letter to Governor Kathleen Sebelius and Legislative Budget Committee, Kansas Legislative Research Department, April 17, 2009 (on FY 2009 and 2010 revenue downturns):
http://skyways.lib.ks.us/ksleg/KLRD/Revenue&Tax.htm

Letter to the Chair of the Senate Committee on Ways and Means and the Chair of the House Committee on Appropriations, Office of the Governor, April 20, 2009 (on Governor’s Budget Amendment No. 2):
http://budget.ks.gov/publications/FY2010/GBA2_Memo--4-21-2009.pdf

Ad Astra Per Aspera (Governor’s address to the Kansas Legislature on the deficit), Office of the Governor, April 30, 2009:
http://www.governor.ks.gov/News/NewsRelease/2009/nr-09-0430a.htm

’09 Session Draws to Close, Topeka Capital-Journal, May 9, 2009 (about passing the budget):
http://www.cjonline.com/news/legislature/2009-05-09/09_session_draws_to_close
Also see -- Comparison Report: The Governor’s Budget Report with Legislative Authorizations, Fiscal Year 2010, Kansas Division of the Budget, published on August 7, 2009 (this is a long download but it is valuable for those who want details).
http://budget.ks.gov/publications/FY2010/FY2010_Comparison_Report.pdf

Gov. Parkinson Discusses Strategy to Balance Budget Despite Shortfalls, Office of the Governor, May 28, 2009:
http://www.governor.ks.gov/News/NewsRelease/2009/nr-09-0528b.htm

Transcript of Governor’s Web Address: Today’s Challenge, Tomorrow’s Opportunity, Office of the Governor, June 8, 2009 (on new shortfalls):
http://www.governor.ks.gov/videos/media/090608_June_Webcast.01_transcript.htm
*** The June  Consensus Revenue Estimate is available at:
http://budget.ks.gov/cre.htm

Transcript of Governor Mark Parkinson’s Web Address:  Responsible Steps on the Path to Recovery (more cuts are needed), Office of the Governor, July 2, 2009:
http://www.governor.ks.gov/videos/media/090702_Webcast_transcript.htm
*** Also see the Governor’s Capitol Blog of July 13 for background on the process of adjusting the budget:
http://www.governor.ks.gov/News/Blog/blog090713.htm

Kansas Governor Cuts School Aid Amid Budget Changes, Hays Daily News, July 2, 2009:
http://www.hdnews.net/apksstory/k1033-BC-KS-KansasBudget-3rdLd-
Writethru-07-02-0720

The State of Kansas Has Been Awarded AA+ Bond Rating, Office of the Governor, August 14, 2009:
http://www.governor.ks.gov/News/NewsRelease/2009/nr-09-0814a.htm

Regional and State Employment and Unemployment Summary, U.S. Bureau of Labor Statistics, August 21, 2009 (Note: The data at this link are updated monthly):
http://www.bls.gov/news.release/laus.nr0.htm


Kentucky:  Budget Reductions Continue
Compiled from several sources named in the text and in the links below.

*** Office of the Governor, October 30, 2008:  “Gov. Beshear told reporters this afternoon that internal economic estimates project a revenue shortfall of nearly $294 million in the General Fund in the fiscal year that ends June 30, 2009. . . . ‘This is a serious shortfall,’ Gov. Beshear said, ‘and it will require action. But, considering the extreme volatility of our economy, that action must be neither rushed nor rash. We are going to act decisively, but in a measured and strategic way.’  To that end, Gov. Beshear outlined a three-point action plan that his administration will undertake over the next several weeks, including: (a) asking the Consensus Forecasting Group to formalize the revenue projections for the current fiscal year, which ends June 30, 2009; (b) (and then) formulating a plan to address the shortfall, which will include spending cuts and may include revenue measures; and (c) meeting with Kentuckians, interest groups and legislators across the state to discuss the depths of the financial problem and his plan to address it.
*** Lexington Herald-Leader, November 27, 2008: State Education Commissioner Jon Draud Wednesday gave Kentucky's public school superintendents until noon Dec. 3 to report how a 4 percent budget cut would affect operations in their districts.  Draud said the cuts could be "devastating" for many districts.  He said he will use the district reports in preparing the education department's plan for achieving a 4 percent across-the-board budget cut as Gov. Steve Beshear has requested. Beshear said Tuesday that he wants such reports from all state agencies and public universities by Dec. 5 to counter a growing revenue shortfall. State budget cuts would be "nothing but bad news for Kentucky kids," said Robert Sexton, executive director of the Prichard Committee for Academic Excellence.  He said the timing is especially bad because school budget already have been weakened by earlier cuts. . . . The state's SEEK funding program — Support Education Excellence in Kentucky — which provides operating money for public schools, has been exempt from previous budget reductions. But education officials say that SEEK dollars are ‘on the table’ this time.
*** Lexington Herald-Leader, December 3, 2008:  “Many Kentucky school districts probably would have to dip into contingency funds to absorb a projected 4 percent State budget cut, but that might only postpone the pain, public school superintendents say.  Several superintendents said in interviews Tuesday (December 2) that, since many districts have built up their contingency funds in anticipation of future needs such as enrollment growth, using the funds to offset a budget cut now might leave some districts short next year or later. . . . State law requires districts to maintain a contingency fund equal to 2 percent of their operating budget, but some well-off districts have built up their funds to 5 percent or more."
*** Office of the Governor, December 11, 2008:  “Gov. Steve Beshear today proposed a plan to address the State’s budget crisis that would utilize a 70-cent increase in cigarette taxes and double the tax rate on other tobacco products to protect funding for education as well as the State’s most vulnerable populations through Medicaid and mental health services.  Specifically, Gov. Beshear’s plan would protect SEEK, Support Education Excellence in Kentucky, the $3 billion in basic funding for elementary and secondary education; and student financial aid for higher education, while limiting cuts to the rest of elementary and secondary education and higher education institutions to 2 percent. Medicaid and mental health services would be protected; along with corrections beds in the state’s prison system and State run juvenile justice facilities and school-based programs that are considered vital in many communities. In addition, the governor’s plan would limit cuts to the Kentucky State Police to 2 percent, which saves a new class of 60 troopers. The plan, released this morning at a Capitol news conference, was developed in response to a $456.1 million deficit in this fiscal year that ends June 30, 2009. Gov. Beshear said his plan represents an important starting point for discussion with legislators, who will be asked to consider the plan early next year.”
*** Office of the State Budget Director, January 13, 2009:   This presentation first reviews budget reductions for FY 2008 and FY 2009 made in the past year (for a total of $432 million), then shows that the General Fund shortfall for FY 2009 is $456.1 million less than budgeted ($475 million when the severance tax dedicated revenue adjustment is included).   Then it summarizes Governor Beshear’s plan to balance the budget: “(a) reduce State agency budgets while preserving priorities; (b) identify lapses and fund transfers to mitigate cuts; (c) furlough State workers for 3 days to avoid significant layoffs; (d) raise the cigarette tax by 70 cents to $1.00 per pack effective April 1, 2009, and raise taxes on other tobacco products; (e) use appropriated funds in the Budget Reserve Trust Fund (rainy day funds) and replace it next year with increased tobacco tax revenues.”   In education, the priorities include no cuts in K-12 SEEK funding (Support Education Excellence in Kentucky),  teachers’ retirement system, or student financial aid, and 2% cuts in all other K-12 and in postsecondary education institutions.   The program for Children with Special Health Care Needs would be reduced by $293,500 (close Hopkinsville office and eliminate access to the underinsured assistance program for the remainder of the year).
*** Office of the State Budget Director, January 30, 2009:  In a letter to the Governor, the Director of the Legislative Research Commission, and the Director of the Administrative Office of the Courts, the State Budget Director wrote that “the interim General Fund forecast for the final two quarters of FY09 calls for a decrease of 7.3 percent as compared to the same period one year ago, resulting in a projected decline of 2.7 percent for the entire fiscal year. . . . The resulting interim forecast calls for General Fund receipts to fall $459.0 million short of the enacted budgeted revenues for FY 09.  The Consensus Forecasting Group revised the FY09 estimates in November 2008.  The official adopted estimate was $456.1 million below enacted budgeted revenues (at that time).”
*** Office of the Governor, February 13, 2009:  “Gov. Steve Beshear today signed a budget package (for the current year) that he said protects funding for basic education, health care and public safety. . . . The package approved today by the Kentucky Senate, and earlier this week by the House, includes some $150 million in additional spending cuts combined with a 30 cent increase in the cigarette tax and applies the State’s 6 percent sales tax to store sales of beer, wine and liquor.  Under the package, the basic education funding formula would be preserved from any cuts, while higher education would only be cut 2 percent.  Medicaid funding also would be preserved from further cuts as would significant areas of public safety.  Most other State agencies would be cut 4 percent. The downturn in the economy resulted in over $430 million in cuts in the State budget last year.”
*** Office of the Governor, March 18, 2009:  “Gov. Steve Beshear today unveiled the new ‘Kentucky at Work’ Web site – a virtual information center that will give Kentuckians access to how federal stimulus dollars are being spent in the Commonwealth. . . . The Web site’s debut comes as the governor has officially confirmed to the federal government that Kentucky will be accepting stimulus dollars. . . . The Kentucky at Work initiative will receive about $3 billion over the next 28 months for strategic investments in health care, education, energy, infrastructure and economic development.  In addition, the State will be able to compete for further investments in areas such as energy research and education.”
*** Office of the Governor, June 3, 2009:   “Faced with the largest shortfall in modern Kentucky history, Gov. Steve Beshear today unveiled a proposed budget for next year that does not raise taxes on working families and businesses while preserving basic funding for classroom instruction, health care programs for the most vulnerable and key areas of public safety.  Gov. Beshear told reporters this afternoon that he is formally calling the legislature into a special session, starting June 15, to address a projected $1 billion shortfall in the legislatively enacted budget for the new year, which begins July 1. The coming budget year is also the third consecutive year that the state has had fewer dollars in revenue than projected and budgeted expenses – an unprecedented occurrence. . . . The proposed plan will be paid for by making an additional $200 million in cuts from enacted levels and utilizing more than $740 million in federal stimulus dollars, the bulk of which would go toward education and Medicaid as prescribed by law.” A list of budget highlights is included.  (NOTE:  The Proclamation attached to the press release states that “the Consensus Forecasting Group issued an official revision to revenue estimates on May 29, 2009, finding that the State general fund will have a shortfall of $966 million and the road fund will have a shortfall of $239 million for the fiscal year beginning on July 1, 2009, representing a shortfall of 10.7 percent of the general fund and 17.0% of the road fund.”)
*** Kentucky Office of Employment and Training, June 2, 2009:  “Unemployment rates rose in all 120 Kentucky counties between April 2008 and April 2009. . . . Fayette and Woodford counties recorded the lowest jobless rates in the commonwealth at 6.9 percent each.  They were followed by Calloway County, 7.3 percent; Oldham County, 7.5 percent; Hickman County, 7.6 percent; McCracken County, 7.7 percent; Boyd County, 7.8 percent; Pike County, 8 percent; Carlisle County, 8.1 percent; and Franklin County, 8.2 percent.   Magoffin County recorded the State's highest unemployment rate - 16.7 percent.  It was followed by Jackson County, 15.9 percent; Trigg and Menifee counties, 15.8 percent each; Bath County, 15.2 percent; Allen and Powell counties, 14.5 percent each; Butler County, 14.2 percent; McCreary County, 14.1 percent; and Lewis County, 13.9 percent.”
*** Office of the Governor, June 24, 2009: Governor Beshear said, “’I will sign legislation that balances our budget for the upcoming year and that creates significant new investments for our people in jobs, growth and economic revitalization – at a time when our State needs it the most,’ . . . However, even with the accomplishments, the Governor said he was disappointed that the long-term fix he and Speaker Greg Stumbo proposed for the horse industry wasn’t adopted and that millions of dollars in additional spending added by the State legislature will impose deeper cuts throughout State government.”
*** U.S. Bureau of Labor Statistics, August 21, 2009:  Kentucky’s seasonally adjusted unemployment rate in July 2009 was 11.0 percent -- up from 6.5 percent in June 2009.   Kentucky is one of the States with statistically significant unemployment rate changes during that period.
*** Office of the Governor, August 27, 2009:  “Gov. Steve Beshear said today that new tax relief programs and spending added during the recently completed legislative session -– along with a still volatile national economy -- will result in 4 percent cuts for most State agencies during the current budget year.  However, using funds available from the federal stimulus legislation, Gov. Beshear said he will maintain his commitment to not cut the SEEK formula, higher education, health care for the most vulnerable, public safety and economic development this budget year. . . .. . . State forecasters recently estimated that Kentucky will fall about $82 million short of previous projections for this year, making the need for additional adjustments to the state budget likely in the coming months.”
_________________________________
Gov. Beshear Says State Will Manage Projected Shortfall, Office of the Governor, October 30, 2008 -- Scroll to October 30:
http://www.governor.ky.gov/media/pressreleases/pressreleases_archived.htm

Kentucky School Districts Asked to Outline Cuts,  Lexington Herald-Leader, November 27, 2008:
http://www.kentucky.com/211/story/606889.html

Schools Look to Contingency Funds in Face of Cuts, Lexington Herald-Leader, December 3, 2008:
http://www.kentucky.com/211/story/613468.html

Beshear Plan Would Protect Education; Medicaid and Public Safety Also Top Priorities, Office of the Governor, December 11, 2008 -- Scroll to December 11 (Protecting Our Values):
http://www.governor.ky.gov/media/pressreleases/pressreleases_archived.htm

FY 2009 Governor’s Budget Reduction Proposal, Presentation to the Joint Session of the House and Senate Appropriations and Revenue Committee, January 13, 2009, Office of the State Budget Director:
http://www.osbd.ky.gov/NR/rdonlyres/7BF27FD5-949C-43AF-B790-
AB09E22BC8D6/0/ARPresentation011309.pdf

January 30 Quarterly Economic and Revenue Report, Second Quarter Fiscal Year 2009, Office of the State Budget -- See Second Quarter Fiscal Year 2009:
http://www.osbd.ky.gov/publications/qtrreconrec.htm

Beshear, Legislative Leadership Sign Budget Legislation, Office of the Governor, February 13, 2009:
http://www.governor.ky.gov/pressrelease.htm?PostingGUID=
{15170B9A-A9DC-4193-9E3C-0DBE42A2C47A}

Commonwealth Announces Stimulus Web Site, Office of the Governor, March 18, 2009:
http://www.governor.ky.gov/pressrelease.htm?PostingGUID=
{C7774EAA-B52D-4AD8-9629-D12F27B5ADCE}
*** The Kentucky at Work stimulus website is at:
http://kentuckyatwork.ky.gov/Pages/default.aspx

Jobless Rates Up in 120 Counties From April 2008 to April 2009, Kentucky Office of Employment and Training, June 2, 2009:
http://www.workforcekentucky.ky.gov/article.asp?PAGEID=
4&SUBID=&articleID=763

Beshear Budget Plan Preserves Commitments to Education, Health Care, Public Safety, Office of the Governor, June 3, 2009:
http://www.governor.ky.gov/pressrelease.htm?
PostingGUID={0EF4B346-CBC8-4B96-9059-B73841DB897E}

Gov. Beshear: Session Produced Major Accomplishments, Jobs Will Be Saved and Created, Hundreds of Millions Invested, Office of the Governor, June 24, 2009:
http://www.governor.ky.gov/pressrelease.htm?
PostingGUID={88F35247-5DEA-4A7B-A639-1225D39DFE13}
*** The full version of the operating budget, the education budget, and other budget documents are available -- Scroll down:
http://www.osbd.ky.gov/publications/buddocs.htm

Regional and State Employment and Unemployment Summary, U.S. Bureau of Labor Statistics, August 21, 2009 (Note: The data at this link are updated monthly):
http://www.bls.gov/news.release/laus.nr0.htm

Most State Agencies to Receive 4 Percent Cuts, Office of the Governor, August 27, 2009 (Click on Press releases):
http://www.governor.ky.gov/pressrelease.htm


Louisiana:  Slowdown Tears a Hole in the Budget
Compiled from several sources named in the text and in the links below.

*** Office of the Governor, November 20, 2008:  “Today, Governor Bobby Jindal signed an executive order establishing a limited hiring freeze for the executive branch of State government. The order comes as State government deals with the costs of the two recent hurricanes in the midst of national economic uncertainty, volatile oil prices, State revenue declines, and a projected $1.3 billion shortfall for the next fiscal year. . . . The hiring freeze is aimed at achieving at least $25 million in State general fund savings during the remainder of the current fiscal year, which runs through June of 2009.  A similar hiring freeze ordered at the start of the Jindal administration (in January 2008) saved $39 million in the State general fund.
 The hiring freeze is ordered for 29 departments, agencies, or budget units in the executive branch, exempting positions specifically related to direct patient care and those critical to the safety of the public, as well as authorizing higher education institutions to implement the freeze.”
*** NOLA.com, The Times Picayune, December 16, 2008:  “Health care and higher education programs will likely face the holiday budget ax after a forecasting panel determined Monday that plummeting energy prices and the national economic slowdown will combine to tear a $341 million hole in this year's State budget.  The latest numbers from the Revenue Estimating Conference, a four-member panel that decides how much money the State can spend, also project that next year's budget shortfall will exceed $2 billion: about $750 million more than earlier estimates.  The sobering news marks a stunning turnaround for State finances after three years of strong post-Katrina economic growth and sky-high energy prices allowed lawmakers to cut taxes, raise spending and run up record surpluses. . . . If the midyear deficit is certified Friday (December 19) by a House-Senate budget committee, as expected, Jindal will have 30 days to outline how he plans to bring the budget back into balance.”
*** Shreveport Times, December 17, 2008:  “The Executive Committee of the Louisiana Community and Technical College System will hold a special meeting at 2 p.m. Thursday (December 18) to review . . . detailed plans from each college regarding their proposed budget reductions.  The community and technical colleges must cut $14.1 million from operating budgets for the current fiscal year which ends June 30. The entire higher education community must cut $109 million.”
*** Office of the Governor, December 30, 2008:  Today Governor Jindal released the administration’s detailed cost-savings plan for $341 million in necessary spending reductions to meet the state’s FY 09 certified revenue shortfall. . . . (The Governor said that this) is a first step in an effort to right-size State government, to maximize efficiencies, to eliminate non-essential expenditures, and to begin identifying savings that can be sustained in preparation for the much larger projected shortfall in FY 10. . . . To eliminate the $341 million FY 09 deficit, departments were asked to identify efficiencies and cost-saving measures. For many departments, these savings came as a result of freezing operational expenses in travel, supplies, acquisitions, operational services and professional services, and halting or delaying the implementation of certain new initiatives.
 Other savings were achieved through reductions or eliminations in lower-performing programs. . . .The administration worked to make strategic reductions in every department in order to mitigate the level of reductions in health care and higher education. As a result of these efforts, current year spending reductions for DHH are $118 million, and higher education’s necessary cost-savings measures were reduced by half – down to $55.2 million. . . . The administration has made substantive increases in investments to K-12 education, which are not affected by FY 09 cost savings measures.  These increases include (a) $70.1 million toward teacher pay raises this year, giving each teacher an increase of $1,019 ($1,176 with related benefits); (b) $12.6 million in new funding for the Ensuring Literacy and Numeracy for All initiative; (c) $950,000 in general fund dollars and $1.4 million in TANF funds for the drop-out prevention program, Jobs for America's Graduates Louisiana; and (d) a $500,000 increase in funding for Teach for America for a total of $968,468. Additionally, the budget also included increases of $10 million for flexible pay for rural school districts, and $90 million for the Minimum Foundation Program (MFP) school funding formula for public elementary and secondary schools.” (Lawmakers passed the cost-savings plan on January 12.)
*** Office of the Governor, February 11, 2009:  “Today, Governor Bobby Jindal announced many of his legislative priorities for improving education in the next session. The Governor was joined by several area legislators to outline three key priority areas for education improvements, including (a) increasing education discipline, (b) making further improvements in charter schools and (c) implementing value-added assessments to better gauge student progress. The Governor announced these three major education priority areas, and said that he will also push for other important education improvement measures during the upcoming session.
*** Revenue Estimating Conference, February 18, 2009: The Revenue Estimating Conference report shows, among other things, that estimates for the general fund are down by 8.0 percent for FY 2009, down by 13.6 percent for FY 2010, and up by 1.4 percent for Fiscal 2011. “The severity of the national recession is now expected to be worse, and this feeds into regional forecasts and expected revenue collections.  General fund forecast revisions are also significantly influenced by the elimination of the dedication of vehicle sales tax to the Transportation Trust Fund for FY10 and all subsequent years, pursuant to language in the dedication statute.”  Very detailed data are included in the report.
*** Office of the Governor, March 13, 2009:  On March 13, Governor Jindal laid out an overview of the proposed FY 2010 Executive Budget.  “This budget proposes total funding of $26.719 billion, a decrease of $2.891 billion, or 9.8 percent, compared to the FY 09 total budget of $29.611 billion. . . .  (Among many other things, the budget recommends that) the Department of Education will relocate the Louisiana School for the Visually Impaired from its current location in downtown Baton Rouge to the campus of the Louisiana School for the Deaf on Brightside Drive. The Department of Education can achieve a net recurring savings of more than $4.6 million and a net savings of more than $4 million for fiscal year 2010 from this move.  DHH proposes the merger of all mental health units into programs under the Office of Mental Health state office to allow the department to increase efficiencies for budget flexibility, resource and staff sharing, and cash flow management. . . . The total recommended budget for K-12 EDUCATION in the FY 10 Executive Budget is $4.94 billion, a reduction of $141 million, or 2.8 percent, from the $5.09 billion budgeted in FY 09, but still $998 million more than the FY 06 funding level of $3.95 billion. . . . The total recommended budget for HIGHER EDUCATION in the FY 10 Executive Budget is $2.638 billion, a reduction of $219 million, or 7.7 percent, from the $2.857 billion budgeted in FY 09, but still $186.5 million more than the FY 06 funding level of $2.451 billion."
*** Daily Reveille, Louisiana State University, March 19, 2009:  This commentary points out that Governor Jindal “recently chose to reject nearly $100 million in funds from President Obama’s stimulus package aimed at expanding unemployment benefits” and iterates various views on this.
*** Office of the Governor, April 3, 2009:  “Today, Governor Bobby Jindal joined local officials and several area legislators in Houma to highlight a new dropout prevention pilot program that was recently launched this spring in 14 school districts throughout the State.  . . . Governor Jindal highlighted several statistics related to dropout levels, including that approximately 13,500 students are dropping out of high school yearly, and that number climbs to almost 16,000 if middle school students are included.  In an effort to address this problem, the Louisiana Department of Education, in partnership with business groups, the Louisiana Workforce Commission, Higher Education and the Department of Social Services, launched the Educational Mission to Prepare Louisiana’s Youth (EMPLoY). . . .  In terms of funding for the EMPLoY program, Governor Jindal said the cost of the program is $2.55 million which is being paid for with existing Department of Education and federal Temporary Assistance for Needy Families (TANF) funds. . . . For the 2010 fiscal year, Governor Jindal has recommended that the legislature approve $3.3 million in TANF funds to support both the Jobs for America’s Graduates (JAG) and the EMPLoY programs.”
*** Office of the Governor, April 8, 2009:  “Today, Governor Bobby Jindal joined several area legislators and local officials in Lafayette to highlight five major budget and government reform initiatives that he will work with the legislature to pursue in the upcoming legislative session. . . . The first major reform initiative proposed by Governor Jindal is focused on higher education spending reforms through a new funding formula. . . . The second major reform is the formation of a Commission on Streamlining Government to examine each state agency’s statutory and constitutional duties in an effort to reduce the size of state government. . . . The third major reform initiative is the implementation of civil service reforms targeted at streamlining the number of government employees on the rolls by tying employees to their job performance and not simply encouraging them to achieve government tenure. . . . The fourth is focused on fiscal reforms.  (Specifically, the Governor has called for four fiscal reforms that will increase flexibility and accountability in the budget process.) . . . The fifth and final major reform initiative proposed by the Governor calls for changes to the Minimum Foundation Program (MFP) education funding formula so that it will be more accountable and transparent.  Governor Jindal said the MFP formula currently has additional costs associated with educating students living in poverty, and those who need special education services, career and technical education, and a more challenging curricula. However, because the MFP is a block grant to school districts, there is no accounting for how these targeted funds are used to benefit these targeted students.”
*** Office of the Governor, April 28, 2009:  In his address at the opening of the Legislature’s regular session, Governor Jindal reviewed accomplishments of the past year and reviewed his five budget reforms (see the April 8 item above).   Among other things, he said that “in December, Louisiana was the only State in the country to add jobs.  In January we were the only State in the country where the unemployment rate went down, not up.  And again in February, we were the only State in the country that added jobs.  Last Friday (April 24), new numbers came out showing yet again, compared year over year Louisiana added thousands of jobs. . . . (The Governor also said that) it is important even as we do more with less, even as we reduce spending coming out of Baton Rouge, we continue to move our State forward. For that reason we've asked for your support on a number of initiatives we're supporting.”  Examples include (a) cracking down on drunk drivers; (b) reducing recidivism rates in prisons; (c) reducing the high school dropout rate; (d) other bills to reform education and health care.
*** Revenue Estimating Conference, May 21, 2009:   According to the May Current Revenue Outlook, “April tax receipts were generally disappointing, with the exception of the personal income tax.  Corporate taxes are becoming extremely weak in the current year. . . .Weak employment growth, flat income projections, and consumer/business spending retrenchment cause this forecast to decline materially. . . . Substantial tax reductions have yet to be fully reflected in the FY09 collections, and more tax cuts are scheduled for FY10. . . . The story is still the same -- State revenue collections fall significantly in FY09, even more in FY10, before recovery with modest growth in FY11, continuing into FY12 and FY13.”  Accompanying figures indicate that the FY09 shortfall is $32 million, and the FY10 shortfall is $29 million.
*** NOLA.com, The Times Picayune, June 26, 2009:  “The Legislature wrapped up its two-month session Thursday (June 25)  by approving a budget deal that plugs $210 million in one-time dollars back into health care, higher education, and other programs but still reduces spending well below current-year levels. .  . . . Governor Jindal also played successful defense against several tax-related measures he opposed, including two attempts to raise tobacco taxes, a bill to delay an income-tax break that takes effect this year, and another that would have forced the State to accept $98 million in expanded federal unemployment benefits. . . . The final deal came together nearly two weeks after legislators sent the main $28 billion budget bill to Jindal with $274 million in spending that was contingent on the passage of other legislation.  When the governor announced that he would veto the contingency items, it set off a second round of debate as lawmakers tried restoring some of that money through other bills. . . . A final piece of the revenue puzzle fell into place this week, when legislators learned that they would receive $60 million more than expected in federal stimulus dollars for Medicaid.”
*** Office of the Governor, July 24, 2009:  “Today, Governor Bobby Jindal signed an executive order establishing a limited hiring freeze for the executive branch of State government. The order comes as State government faces multiple-year budget challenges. . . . The hiring freeze is aimed at achieving at least $20 million in state general fund savings during the remainder of the current fiscal year, which runs through June of 2010.  Savings will be achieved through freezing 450 vacant T.O. FTE positions, in addition to establishing a ceiling in the number of occupied non-T.O. FTE positions. . . . The hiring freeze is ordered for all departments, agencies, or budget units in the executive branch, except those overseen by statewide elected officials and exempting positions specifically related to direct patient care and those critical to the safety of the public.”
*** NOLA.com, The Times Picayune, July 27, 2009:  “The Board of Elementary and Secondary Education (BESE) granted waivers to 19 school districts . . . that did not want to take advantage of the law approved by the Legislature this spring that was touted as a way to reduce the State's high school dropout rate. . . . Its goal is to keep students who don't plan to attend college from dropping out of high school by steering them into more technical and vocational course work and by relaxing State academic requirements for students entering ninth grade.  Legislators approved the law by wide margins but left it to BESE to write the rules governing the program.  The board approved the waivers with little discussion at a special meeting.”
*** NOLA.com, The Times Picayune, August 14, 2009:  “Louisiana Department of Revenue Secretary Cynthia Bridges was in New Orleans on Friday to remind taxpayers of the upcoming tax amnesty program, which begins Sept. 1 and runs through October. 

During that two-month period, or ‘Window of Opportunity,’ the revenue department will waive penalties and one half of the interest due on late tax payments. About 338,000 taxpayers -- 96,000 businesses and 242,000 individuals -- owe nearly $1 billion to the State, including more than $440 million uncovered during State audits.  The revenue department hopes to collect at least $150 million with the amnesty program.”
*** U.S. Bureau of Labor Statistics, August 21, 2009:  Louisiana’s seasonally adjusted unemployment rate in July 2009 was 7.4 percent --- up from 4.4 percent in July 2009.  Louisiana is among the States with statistically significant unemployment changes during that period.
_________________________________
Governor Bobby Jindal Signs Executive Order Establishing Limited Hiring Freeze in State Government, Office of the Governor, November 20, 2008:
http://www.gov.louisiana.gov/index.cfm?md=newsroom&
tmp=detail&articleID=773

Midyear Cuts Likely in Louisiana Budget, NOLA.com, The Times Picayune, December 16, 2008:
http://www.nola.com/education/index.ssf?/base/news-4/
1229408533319340.xml&coll=1

LCTCS Board Panel to Meet and Review College Budget Reduction Plans, Shreveport Times, December 17, 2008:
http://www.shreveporttimes.com/article/20081217/NEWS01/81217023

Governor Jindal Releases Detailed Cost-Savings Plan for $341 Million in FY 09 Budget Savings, Office of the Governor, December 30, 2008:
http://www.gov.louisiana.gov/index.cfm?md=newsroom&
tmp=detail&articleID=870
*** The FY 2008-2009 State Budget which the legislature subsequently approved is at:
http://doa.louisiana.gov/OPB/state-budget.htm

Governor Bobby Jindal Announces Legislative Priorities for Improving Education, Office of the Governor, February 11, 2009:
http://www.gov.louisiana.gov/index.cfm?md=newsroom&
tmp=detail&articleID=986

Revenue Estimating Conference 2/18/09 FY09--FY13, Legislative Fiscal Office, February 18, 2009:
http://lfo.louisiana.gov/rev

Governor Jindal’s Remarks on the FY 2009-2010 Executive Budget, Office of the Governor, March 13, 2009:
http://www.gov.louisiana.gov/index.cfm?md=newsroom&
tmp=detail&articleID=1064
*** To review the proposed Executive Budget for 2009-2010, see:
http://doa.louisiana.gov/opb/pub/ebsd.htm

Our View: Legislature Should Override $100 Million Jindal Refused, Daily Reveille, Louisiana State University, March 19, 2009:
http://www.lsureveille.com/opinion/our_view_legislature_should_override_100_million_jindal_refused-1.1621285

Governor Bobby Jindal Highlights Dropout Prevention Pilot Program, Office of the Governor, April 3, 2009:
http://www.gov.louisiana.gov/index.cfm?md=newsroom&
tmp=detail&articleID=1126

Governor Bobby Jindal Highlights Major Budget and Government Reform Initiatives at Lafayette Event, Office of the Governor, April 8, 2009:
http://www.gov.louisiana.gov/index.cfm?md=newsroom&
tmp=detail&catID=2&articleID=1129&navID=3
*** The Governor’s priorities for fiscal reform are available at:
http://www.gov.louisiana.gov/index.cfm?md=newsroom&
tmp=detail&articleID=988

Transcript of Governor Bobby Jindal’s Address to the Legislature for Opening of the Regular Session, Office of the Governor, April 28, 2009:
http://www.gov.louisiana.gov/index.cfm?md=newsroom&
tmp=detail&articleID=1183

Current Revenue Outlook, May 2009, Revenue Estimating Conference, May 21, 2009:
http://lfo.louisiana.gov/rev

Session Ends With Budget Deal, NOLA.com, The Times Picayune, June 26, 2009:
http://www.nola.com/news/t-p/capital/index.ssf?/base/news-
7/124599420892390.xml&coll=1
*** Also see Governor Jindal’s June 25 overview of the FY10 budget agreement (including information on amounts for higher education, hospitals, and other components):
http://www.gov.louisiana.gov/index.cfm?md=newsroom&tmp=
detail&articleID=1360

Governor Bobby Jindal Signs Executive Order Establishing Limited Hiring Freeze in State Government, Office of the Governor, July 24, 2009:
http://www.gov.louisiana.gov/index.cfm?md=newsroom&tmp=
detail&articleID=1459

Career Track Waivers Granted to 19 School Districts, NOLA.com, The Times Picayune, July 27, 2009:
http://www.nola.com/education/index.ssf/2009/07/career_track_waivers_granted_t.html

Louisiana Revenue Secretary Continues to Push to Promote Tax Amnesty Program, NOLA.com, The Times Picayune, August 14, 2009:
http://www.nola.com/business/index.ssf/2009/08/
louisiana_revenue_secretary_co.html

Regional and State Employment and Unemployment Summary, U.S. Bureau of Labor Statistics, August 21, 2009 (Note: The data at this link are updated monthly):
http://www.bls.gov/news.release/laus.nr0.htm


Maine: Downturns and Curtailments 
Compiled from several sources named in the text and in the links below.

*** Office of the Governor, July 1, 2008:   In this Executive Order, Governor Baldacci states that “the State of Maine and national economies continue to exhibit slow growth due to volatile energy prices and disruptions in the housing and financial markets that dampen consumer spending; and it is fiscally responsible to continue budgetary constraints that are currently in place.”  This directive places a hiring freeze on vacant positions and limits overtime, travel and other expenses. The order allows for emergency exceptions.”
*** Office of the Governor, November 19, 2008:   In this Executive Order, Governor Baldacci stated, in part, that “the Consensus Economic Forecasting Commission and the Revenue Forecasting Committee recently met jointly and preliminarily concluded that General Fund revenues will likely fall short of current projections by $110 million to $150 million for Fiscal Year 2008-09. . . . In order to address the anticipated continued shortfall in Fiscal Year 2008-09, . . . (a) departments and agencies were assigned reduction targets for Fiscal Year 2008-09;  (b) departments and agencies have presented options and program impact analyses in connection with the reduction targets for Fiscal Year 2008-09; (c) discussions were held with affected departments and agencies about the options and program impact analyses they presented; and (d) proposed reduction options and analyses were evaluated based on a number of factors. . . . I intend to propose a more comprehensive package of recommendations for the Legislature’s consideration during the 1st Regular Session of the Legislature in the form of a supplemental budget that will, in part, negate the need for some of these curtailments if adopted. . . .  I do hereby order the Commissioner of Administrative and Financial Services to curtail Fiscal Year 2008-09 quarterly allotments by $79,750,233 in the General Fund accounts as specified in the attached financial order.”
*** Office of the Governor, January 9, 2009:   Governor Baldacci “released the details of his biennial budget proposal for fiscal years 2010-11. The budget accounts for a $330 million decline in revenues caused by the national recession and a structural gap of an additional $508 million. . . . The proposed $6.1 billion budget for fiscal years 2010-11 will be about $200 million less than the 2008-09 two-year budget.  According to records at the Department of Administrative and Financial Services dating back to 1974, this is the first time that a biennial budget is smaller than its predecessor. . . . The current budget proposal for FY 2010-11 extends the majority of the budget changes included in the supplemental budget (for fiscal 2009). . . . The budget does not increase the sales of income tax or use resources from the State’s reserve accounts.”  Among the proposed cuts are (a) spending reductions across State government; (b) the elimination of 219 positions, which requires 139 layoffs; (c) a State employee retirement incentive; (d) a continuation of the current hiring freeze; (e) changes in the tax code.   Further details are included in the news release.  (NOTE: On February 9, the Maine Legislature began four weeks of public hearings on the proposed budget.)
*** Office of the Governor, March 10, 2009:   In his State of the State Address, Governor Baldacci said, among other things, that  “just three short weeks ago the President signed an unprecedented economic recovery plan into law.  This much needed federal support will send about $900 million new dollars to Maine.”  The Governor also highlighted a number of initiatives in: (a) energy (weatherization, investment in clean, renewable energy resources; (b) health care (establish a Universal Wellness program and create a pilot program based on patient-centered primary care delivery and other initiatives); (c) education (expand the laptop program so that youth in grades 7 through 12 have laptops in schools).  The Governor also reiterated the necessity for the bond package that he unveiled last week.
*** Maine State Planning Office, April 1, 2009:  “The Maine Consensus  Economic Forecasting Commission convened on March 31, 2009 to revise its November 2008 forecast. . . . (Among other things, the report states that) the Commission is projecting continued losses in Maine non-farm wage and salary employment in 2009 and 2010 (-3.8% and -1.6%, respectively, on an annual average year-over-year basis, followed by a recovery period starting in late 2010).  The forecast for personal income in 2009 through 2012 has been reduced as a result of the weak job market.”
*** Office of the Governor, April 16, 2009:  “Approximately 10,000 laid-off workers could benefit by the end of this year from legislation signed today by Governor John Baldacci after expedited consideration by the Maine Legislature. The measure makes changes to Maine unemployment law to allow the start of an Extended Benefit Program. This provides additional weeks of unemployment benefits to workers who have lost their jobs through no fault of their own, are still unemployed, and have run out of other unemployment benefits. . . . Provisions in the federal Recovery Act pay for 100 percent of the cost of Extended Benefits for most workers.” 
*** Office of the Governor, May 1, 2009:  “Governor John E. Baldacci today released the details of his plan to close a $569 million budget gap created by declining revenues. . . . The plan closes a $129 million budget gap for the current fiscal year, which ends June 30, and a $440 million gap in fiscal years 2010-11. . . . Reductions touch all areas of State government, including: (a) increased health insurance cost sharing for new State employees; (b) elimination of planned merit increases; (c) 12 government shutdown days per year in 2010 and 2011; and (d) creation of a Commission to Recommend Streamlining of State Programs and Services.  The plan also reduces funding for: K-12 and higher education; the Department of Health and Human Services; the Homestead Exemption program; the Circuit Breaker program; Municipal Revenue Sharing; and the Milk Subsidy, by capping the amount available. . . . In addition, the plan relies upon $75.5 million from the Budget Stabilization Fund in 2009 and 2010 and $40.6 million from the State’s Working Capital Fund. Taken together, the two funds represent the State’s reserves.”
*** Office of the Governor, May 28, 2009:  Governor Baldacci “has signed the State budget for fiscal years 2009, 2010 and 2011. . . . The biennial budget reduces spending from the last two-year budget by $500 million, from $6.3 billion to $5.8 billion.”
*** Office of the Governor, June 9, 2009:  Governor Baldacci “today released the details of his plans to close a projected revenue decline for the remaining two months of fiscal year 2009. . . . According to preliminary revenue estimates for May from the State Controller, State revenue for May was under budget by $21.2 million.  Analysis of the shortfall by Maine Revenue Services and the Department of Administrative and Financial Services attributes roughly half of the amount to timing issues that should resolve this month.  The Governor’s proposal, which was presented to the Joint Committee on Appropriations and Financial Affairs today, would: (a) transfer $24 million in the Budget Stabilization Fund reserve account from fiscal year 2010 to 2009; (b) capture $1.6 million in unobligated funds from across State government; and (c) utilize $2 million of the approximately $2.7 million revenue balance in fiscal year 2011 created by the State budget which was signed May 28.”
*** Office of the Governor, June 11, 2009:  Governor Baldacci “today ceremonially signed LD 1049, An Act To Encourage Cooperation Among School Administrative Units. The law encourages collaboration and cooperatives among school units to accomplish additional savings and efficiencies beyond reorganization.  Participation in the cooperatives and services carried out by the cooperatives is voluntary.  Some of the educational functions and support services to be provided by the cooperatives include alternative education programs, gifted and talented education programs, postsecondary education options, and food service planning and purchasing.”
*** Office of the Governor, June 12, 2009:   Governor Baldacci “today signed LD 1495, An Act to Implement Tax Relief and Tax Reform. . . . The bill changes current tax structure in a number of ways: (a) lowers the top income tax rate from 8.5 percent to 6.5 percent for income up to $250,000; (b) lowers the top income tax rate for incomes above $250,000 from 8.5 percent to 6.85 percent; (c) broadens the sales tax; (d) makes a portion of the Earned Income Tax Credit refundable for lower and middle income families; (e) increases funding for tourism marketing.  The tax reform plan is revenue-neutral.”
*** Office of the Governor, June 19, 2009:  Governor Baldacci “today signed LD 285, An Act to Amend the Laws Governing the Consolidation of School Administrative Units to Delay All Penalties for One Year. . . . (This legislation) will delay penalties for one year for school districts that have not reorganized.  This delay will give those districts working in good faith toward restructuring time to complete their work.  We cannot continue with the school administrative organizations of the past.  Student enrollment in Maine is falling while the number of administrators has been growing.  It’s unsustainable.  We must continue to move forward along the path to reform. . . . We will continue to support those districts that have not complied with the law and help them transition into more sustainable administrative structure.”
*** Office of the Governor, June 23, 2009:  “The Maine Department of Education is issuing almost $24 million of federal Recovery Act funds to school systems this week and next – the first of three waves of State Fiscal Stabilization Funds included in the American Recovery and Reinvestment Act that will be sent to school districts. The funds replenish the curtailment in State funds that went into effect in January as a result of the global recession and a significant drop in State revenues. . . . Districts have already received increases in federal Title I funds, for educating low-income students, and IDEA, used for special education funding. . . . Districts will receive another $43 million in federal Stabilization funds for 2009-2010, and $59 million for the 2010-2011 school year.”
*** Office of the Governor, July 1, 2009:   Because “the State of Maine and national economies are experiencing significant economic challenges, . . . Governor John E. Baldacci today signed a Special Budget and Expenditure Order. . . . This directive places a hiring freeze on vacant positions and limits overtime, travel and other expenses. The order allows for emergency exceptions.”  A copy of the Order is attached to this announcement.
*** U.S. Bureau of Labor Statistics, August 21, 2009:  Maine’s seasonally adjusted unemployment rate in July 2009 was 8.4 percent -- up from 5.4 percent in July 2008.  Maine is classified as one of the States with statistically significant unemployment rate changes over that period.
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Special Budget and Expenditure Order of July 1, 2008, Office of the Governor, July 1, 2008:
http://www.maine.gov/tools/whatsnew/index.php?topic=Gov_Executive_Orders&
id=58611&v=Article

November 19, 2008 Order Curtailing Allotments Pursuant to Title 5 M.S.R.A. Section 1668 (curtailing FY 2008-2009 allotments by $79,750,233), Office of the Governor, November 19, 2008:
http://www.maine.gov/tools/whatsnew/index.php?topic=Gov_Executive_Orders&
id=65123&v=Article

Governor Baldacci Unveils Two-Year Budget Proposal, Office of the Governor, January 9, 2009:
http://www.maine.gov/tools/whatsnew/index.php?topic=Gov+News&id=66244&
v=Article-2006
*** The Governor’s proposed biennial budget is available at -- Also see March and May change packages on this page):
http://www.maine.gov/budget/budgetinfo/2010-2011budget/
2010-2011budgetrec.htm

Office of the Governor, State of the State Address, March 10, 2009:
http://www.maine.gov/tools/whatsnew/index.php?topic=Gov_Speeches&
id=69159&v=Article
*** Also see the summary in a news release:
http://www.maine.gov/tools/whatsnew/index.php?topic=Gov+News&id
=69160&v=Article-2006

Report of the Consensus Economic Forecasting Commission (CEFC), Maine State Planning Office, April 1, 2009:
http://www.maine.gov/spo/economics/projections/index.htm

Governor Signs Bill to Help Laid-Off Workers, Office of the Governor, April 16, 2009:
http://www.maine.gov/tools/whatsnew/index.php?topic=Gov+News&
id=71233&v=Article-2006

Governor Baldacci Presents Plan to Close $569 Million Budget Gap, Office of the Governor, May 1, 2009:
http://www.maine.gov/tools/whatsnew/index.php?topic=Gov+News&
id=71904&v=Article-2006
*** The May 2009 budget change package is available at:
http://www.maine.gov/budget/budgetinfo/2010-2011budget/
2010-2011budgetrec.htm
*** Also see an article on the Governor’s proposals in Reuters, May 1:
http://in.reuters.com/article/marketsNewsUS/idINN0131018320090501

Governor Baldacci Signs State Budget, Office of the Governor, May 28, 2009:
http://www.maine.gov/tools/whatsnew/index.php?topic=Gov+News&
id=73898&v=Article-2006

Governor Presents Plan to Address Revenue Decline, Office of the Governor, June 9, 2009:
http://www.maine.gov/tools/whatsnew/index.php?topic=Gov+News&
id=74545&v=Article-2006

Governor Baldacci Ceremonially Signs School Cooperation Legislation, Office of the Governor, June 11, 2009:
http://www.maine.gov/tools/whatsnew/index.php?topic=Gov+News&
id=74671&v=Article-2006

Maine Lowers Income Taxes, Office of the Governor, June 12, 2009:
http://www.maine.gov/tools/whatsnew/index.php?topic=Gov+News&
id=74714&v=Article-2006

Governor Baldacci Signs Bill to Delay Penalties for School Districts (that have not reorganized), Office of the Governor, June 19, 2009:
http://www.maine.gov/tools/whatsnew/index.php?topic=Gov+News
&id=75118&v=Article-2006

Recovery Act Education Stabilization Funds Are In the Mail, Office of the Governor, June 23, 2009:
http://www.maine.gov/tools/whatsnew/index.php?topic=Gov+News
&id=75210&v=Article-2006

Maine’s ARRA website, is available at:
http://www.maine.gov/recovery/

Governor Signs Special Budget and Expenditure Order (freeze on hiring, travel, and other expenses), Office of the Governor, July 1, 2009:
http://www.maine.gov/tools/whatsnew/index.php?topic=Gov+News&
id=75597&v=Article-2006

Regional and State Employment and Unemployment Summary, U.S. Bureau of Labor Statistics, August 21, 2009 (Note: The data at this link are updated monthly):
http://www.bls.gov/news.release/laus.nr0.htm


Maryland:  Revenue Estimates Decline but the Federal Stimulus Helps
Compiled from several sources named in the text and in the links below.

*** Office of the Governor, June 25, 2008: “Governor Martin O’Malley today announced over $75 million in Fiscal Year 2009 budget reductions and cost containment measures, including the elimination of 11.5 State workforce positions, to help mitigate the revenue loss from the repeal of the sales tax on computer services. . . . Earlier this year, Governor O’Malley introduced the FY 2009 budget, which grows less than the Spending Affordability Limit set by the General Assembly for a second year in a row.  Governor O’Malley’s proposed budget cut spending by $550 million – on top of the $280 million in reductions achieved last July.”
*** Office of the Governor, October 15, 2008:  “Governor O’Malley and the Board of Public Works today approved over $345 million in budget reductions to balance the FY09 budget, including over $297 million in general funds, and over $50 million in special and federal funds.  The Board also approved the elimination of 830 State positions, bringing the total number of positions eliminated under the O’Malley-Brown Administration to more the 1,500.  Following the national economic downturn and the Board of Revenue Estimates projections last month -- projecting a revenue shortfall of $432 million for FY09 -- Governor O’Malley directed the Department of Budget and Management to cut spending in all State agencies up to 5%. ‘The cuts we are making today are not easy,’ said Governor O’Malley.  ‘Eighty-percent of Maryland’s State budget is dedicated to public safety, public education and public health. . . . Over the last few weeks, we have asked our State agencies to identify cuts of up to five percent in their budgets, and we will continue to work with them to reduce spending and find efficiencies as we work to address these budget challenges brought about by our national economy.’”
*** Office of the Governor, December 16, 2008:  “Today, Governor O’Malley signed an Executive Order establishing a 2 to 5 day furlough and salary reduction plan for all State employees due to this deepening national recession. The plan will save the state over $34 million in FY 2009 and is progressively structured based on each employee’s salary. This afternoon the Board of Revenue Estimates is expected to announce hundreds of millions of dollars in further State revenue reductions for fiscal years 2009 and 2010. . . . All employees subject to this Executive Order shall be required to forego the equivalent of at least two days of pay, and employees making more than $40,000 will also be required to take 16 or 24 furlough hours on or after January 14, 2009 and before June 30, 2009.  Employees earning salaries of less than $40,000 will not be required to take furlough hours, although they will be included in the two days of pay equivalent salary reduction, which are pre-designated for December 26, 2008 and January 2, 2009. . . . Over the past 22 months, the O’Malley-Brown Administration has reduced spending by $2.2 billion, eliminated over 1,500 state positions, and kept budget growth at less than four percent annually.“
*** Maryland Board of Revenue Estimates, December 16, 2008: “General fund revenues are forecast to increase 0.9% to $13.674 billion for fiscal year 2009 -- $415.3 million lower than the previous forecast.  General fund revenue growth is expected to slow further to 0.5% in fiscal year 2010 as revenues reach $13.738 billion -- $963.5 million lower than the previous forecast. Revenue growth in fiscal year 2009, however, is boosted by the tax changes enacted over the past year including new individual income tax brackets, a higher corporate income tax rate, an increase in the sales tax rate, and a doubling of the cigarette tax. Adjusting for these changes, baseline general fund revenues are projected to decline by 5.4% in fiscal year 2009.”
*** Office of the Governor, January 20, 2009:   Governor O’Malley released his FFY 2010 budget today.  The budget “assumes Maryland will receive $350 million from the federal stimulus. . .  (The) proposed budget contains increases in five key priority areas: (a) K-12 public education and school construction, (b) higher education, (c) a safety net for Maryland’s families, (d) public safety, and (e) environmental protection. . . . The FY 2010 budget fully funds the Thornton Bridge to Excellence Plan, proposing a $5.4 billion investment in K-12 education, a $68.3 million increase over FY 2009.  In addition, the capital budget includes a proposed $260.3 million for public school construction and renovation, bringing the O’Malley-Brown Administration’s investment in school construction to an unprecedented level – over $1 billion in just three years.  In addition, Governor O’Malley’s FY 2010 budget includes $774.3 million to fully fund teacher and librarian retirement pension costs. . . . Governor O’Malley’s proposed budget includes a fourth straight year of zero percent increase for in-state college tuition, moving the University System of Maryland from the sixth highest tuition in the nation in 2004 to an anticipated 18th. . . . Governor O’Malley’s announcement of the FY 2010 proposed budget also included an outline of the proposed budget reductions for FY 2009.  Governor O’Malley proposed $154 million of additional cuts for FY 2009 including savings from furloughs, local aid reductions, abolition of 250 vacant positions, and additional agency budget reductions.”  (Note: The General Assembly must pass a budget before adjourning April 13.  The next revenue estimates will be released in March.)
*** Office of the Governor, January 29, 2009:  “Governor Martin O’Malley today delivered the 2009 State of the State address. . . . Governor O’Malley outlined Maryland’s ‘measures of progress,’ including: (a) Maryland’s second largest single-year homicide reduction in 25 years; . . . (b) expansion of affordable healthcare to 100,000 additional Maryland families; (c) conservation of nearly 21,000 ecologically valuable acres through Program Open Space; . . . (d) four straight years of zero percent increase for in-state college tuition, expanding affordable higher education to more Marylanders rather than fewer. . . . Despite challenging economic times, Governor O’Malley’s proposed FY2010 budget includes modest increases in key priority areas, K-12 public education and school construction, higher education, public safety, and the health of Maryland’s future – our children and our environment.”
*** Baltimore Business Journal, February 17, 2009:  “Maryland tax revenue was down 8.2 percent in January despite an uptick in sales tax receipts. . . . The numbers continue a downward trend in State funds, although they don’t require the drastic reshuffling State leaders had to make late last year to reconcile a $432 million gap between expected and actual revenue. Comptroller Peter Franchot, however, said the continued attrition may mean ‘a substantial downward revision’ next month.”
*** Office of the Governor, February 20, 2009:  “Governor Martin O’Malley today . . . announced more than $720 million of funding for Maryland public education resulting from the American Recovery and Reinvestment Plan. . . . Despite difficult economic times, Governor O’Malley proposed a record $5.4 billion funding level in his FY2010 budget for K-12 public education.  However, in order to address a budget shortfall of nearly $2 billion dollars due to the deepening national recession, some adjustments were made in the non-Thornton elements of the formula.  With today’s announcement, every school district in Maryland was made whole . . . and the Geographic Cost of Education Index will be funded at 100 percent for the first time. . . . Governor O’Malley also announced today that these education dollars will go towards full funding of the Thornton Bridge to Excellence Plan, representing more than $185 million in cost increases over the next 27 months.”
*** Baltimore Sun, March 5, 2009:  “State officials approved $82 million in cuts to Maryland's operating budget (for the current year) yesterday, bringing Gov. Martin O’Malley’s midyear trims to more than $500 million as he struggles to keep spending in line with plummeting tax revenues, as the law requires.

 For the third time in the current fiscal year, the Board of Public Works voted to cut O'Malley's $14 billion budget, in part by abolishing hundreds of vacant positions and formally accounting for $34 million saved from a worker furlough plan.”
*** Maryland Board of Revenue Estimates, March 31, 2009:  In a letter to Governor O’Malley, the Board said that “based on our review, the Board recently revised the general fund revenue estimates to $13.228 billion for fiscal year 2009 and $13.022 billion for fiscal year 2010.   These figures represent a reduction to fiscal year 2009 estimates of $445.5 million and to fiscal year 2010 estimates of $716.5 million from the last official forecast of December 2008.  Reflecting the worst downturn since 1982, if not in the post-war period, general fund revenues are now forecast to decline by 2.3% in fiscal year 2009 from fiscal year 2008 levels -- and by a further 1.6% in fiscal year 2010.”  The letter is accompanied by a spreadsheet on revenue data.
*** The Examiner, Washington DC, April 13, 2009:  “The Maryland General Assembly gave final approval Monday (April 13) to the State's $13.8 billion operating budget. . . . (The legislation) includes about $866 million in spending reductions and relies on more than $1.5 billion in federal help. . . . Democrats said the budget maintains spending priorities for education and health, leaving in place money to maintain an in-state tuition freeze at public colleges and universities and full funding for plans to compensate school districts where education costs more.”
*** Office of the Governor, May 5, 2009:  “Governor Martin O’Malley today addressed the P-20 Leadership Council, where he received the final task force recommendations on education in Maryland. . . . Specifically, the Governor received the recommendations today from three task forces, focused on science, technology, engineering and math (STEM), career and technical education (CTE), and school administration.  The recommendations are included with this announcement.
*** The Gazette, Gaithersburg, May 18, 2009:  “State agencies are being asked to consider eliminating programs as part of $200 million in budget cuts that Gov. Martin O'Malley is seeking. . . . Last week's report from the Bureau of Revenue Estimates showed that general fund revenues collected through April 30 were $200 million short of a March estimate. The General Assembly used that estimate to develop the $14 billion fiscal 2010 budget that the legislature approved shortly before adjourning last month. . . . Agencies have until June 5 to submit their recommended reductions, which would be approved by the Board of Public Works in mid-July.”
*** Office of the Governor, July 13, 2009:  Governor O’Malley “released ‘StateStat Report: Efforts to Protect Maryland’s Vulnerable Youth’ to update the public on efforts to improve State services for children and families in Maryland.  Statewide efforts have focused on increasing access to evidenced-based programs (EBP) for at-risk youth, reducing the number of children in out-of-home care, reducing the number of children placed in group homes, and increasing access to comprehensive health care services for families. . . . StateStat, Maryland’s performance-measurement and management program implemented to make State government more accountable and more efficient brings together relevant agencies on a variety of priority areas for the O’Malley-Brown Administration.  Since applying this model to the agencies primarily responsible for youth services in Maryland, the State has increased enrollment in evidence-based youth programs, reduced juvenile crime, and expanded access to healthcare for low- to moderate-income families throughout the State.”
*** Office of the Comptroller of Maryland, July 16, 2009:  In a memorandum to the Maryland Governor, Senate President, and House Speaker, the Comptroller stated that “general fund revenues for the month of June totaled $1.300 billion, a decline of 12.0% from June of last year.  For the fiscal year to date, general fund collections are $12.058 billion, a decline of 5.7%. . . . Although fiscal year 2009 has ended, roughly $700 million of FY 2009 revenue has yet to be collected and accounted for. . . . In addition, all revenue sources are subject to potentially large accounting adjustments through the close of the fiscal year.  Regardless, it is clear at this point that fiscal year 2009 revenues will fall substantially short of the official estimate.”
*** Office of the Governor, July 22, 2006:  “Maryland’s Board of Public Works, a three-person panel authorized to approve budget actions, unanimously approved more than $280 million in FY10 budget reductions today, a step in addressing a projected budget shortfall of more than $700 million for Fiscal Year 2010.  These actions would bring the total amount of reduced spending and budget cuts under the O’Malley-Brown Administration to $4 billion. . . . Today’s budget actions focus largely on State agencies, but protect entirely investments made in Maryland public schools.  General fund support for public education has increased more than $700 million since FY07, while spending for the remainder of the Operating Budget has decreased more than $800 million.  These cuts bring the FY10 Operating Budget below $13 billion, representing the first known incidence of General Fund declines for three straight years in the in State history.”  A complete list of proposed budget reductions is attached to this announcement.
*** U.S. Bureau of Labor Statistics, August 21, 2009:  Maryland’s seasonally adjusted unemployment rate in July 2009 was 7.3 percent -- up from 4.4 percent in July 2008.  Maryland is one of the States with statistically significant  employment rate changes during that period.
*** Office of the Governor, August 25, 2009:  “Governor Martin O’Malley outlined more than $450 million in budget reductions that will be presented to Maryland’s Board of Public Works tomorrow.  These actions are the second step in addressing a projected budget shortfall of more than $700 million for Fiscal Year 2010, and bring the total amount of reduced spending and budget cuts under the O’Malley-Brown Administration to over $4.3 billion. . . . These budget actions focus on over $210 million in reductions to local aid, a furlough and salary reduction plan for State employees, and reductions to State agencies, protecting entirely investments made in Maryland public schools.  General fund support for public education has increased nearly $700 million since FY07, while spending for the remainder of the Operating Budget has decreased more than $1 billion.”  This announcement includes a link to detailed accounting of local aid reductions and a breakdown of the furlough and salary reduction plan.  (NOTE:  It is reported that the Board of Public Works approved $454 million in reductions on August 26).
*** Office of the Governor, August 31, 2009: “Governor Martin O’Malley, joined today by Lieutenant Governor Anthony Brown, Senate President Thomas V. Mike Miller, Jr., House Speaker Michael E. Busch, Ronald Wineholt of the Maryland Chamber of Commerce, and others to announce Maryland’s first tax amnesty holiday since 2001.  The amnesty period, which begins September 1 and runs through October 30, is a result of legislation passed during the 2009 legislative session and allows those Marylanders who owe back taxes to the state to pay those taxes free of penalty and at half the interest accrued. . . . It is estimated that for every $10 million raised by the upcoming holiday the State will add $7.2 million to the General Fund.  The remaining revenue will go toward local governments and the Transportation Trust Fund.  During the last such holiday in 2001, the State collected $39.5 million in revenue.”
_________________________________
Governor O’Malley Cuts Over $75 Million from State Budget, Office of the Governor, June 25, 2008:
http://www.gov.state.md.us/pressreleases/080625c.asp

Governor O’Malley, Board of Public Works Cut Over $345 Million from FY 2009 Budget, Office of the Governor, October 15, 2008:
http://www.gov.state.md.us/pressreleases/081015.asp
    
Governor Martin O’Malley Announces State Employee Furlough Plan, Office of the Governor, December 16, 2008:
http://www.governor.maryland.gov/pressreleases/081216.asp

Report of the Maryland Board of Revenue Estimates on Estimated Maryland Revenues, Fiscal Years Ending June 30, 2009, and June 30, 2010, December 16, 2008:
http://www.comp.state.md.us/publications/fiscalrprts/
2009_BRE_REPORT.pdf

Governor O’Malley Unveils FY 2010 Budget, Office of the Governor, January 20, 2009 -- Click at the bottom for budget outline, highlights, and charts:
http://www.gov.state.md.us/pressreleases/090120.asp

Governor Martin O’Malley Delivers Third State of the State Address, Office of the Governor, January 29, 2009:
http://www.gov.state.md.us/pressreleases/090129.asp

Maryland Tax Revenue Dips 8.3 Percent in January, Baltimore Business Journal, February 17, 2009:
http://www.bizjournals.com/baltimore/stories/2009/02/16/daily12.html

Governor Martin O’Malley Announces Plan to Fully Fund Maryland Schools, Office of the Governor, February 20, 2009 -- Click at the bottom for background materials:
http://www.governor.maryland.gov/pressreleases/090220.asp
*** Also see the Governor’s new Recovery and Reinvestment website:  http://statestat.maryland.gov/recovery.asp

$82 Million More in Cuts Made to Md. Budget, Baltimore Sun, March 5, 2009:
http://www.baltimoresun.com/news/local/politics/
bal-md.cuts05mar05,0,147424.story

Maryland General Fund Revenues, Fiscal years 2008-2010, Maryland Board of Revenue Estimates, March 31, 2009:
http://www.comp.state.md.us/March_Estimates_Table.pdf

Md. General Assembly OKs $13.8B Operating Budget, The Examiner, Washington DC, April 13, 2009:
http://www.examiner.com/a-1958559~Md__General_Assembly_OKs__13_8B_operating_budget.html

Governor Martin O’Malley Receives Panel Recommendations on Education, Office of the Governor, May 5, 2009:
http://www.governor.maryland.gov/pressreleases/090505.asp

Budget Cuts Will Mean Eliminating Programs, O’Malley Says, The Gazette, Gaithersburg, May 18, 2009:
http://www.gazette.net/stories/05182009/businew175057_32543.shtml
*** The final report of the STEM Task Force was released on August 6, 2009:
http://www.governor.maryland.gov/pressreleases/090806b.asp

StateStat Report:  Efforts to Protect Maryland’s Vulnerable Youth, Office of the Governor, July 13, 2009:
http://www.governor.maryland.gov/pressreleases/090713.asp

Letter to Governor Martin O’Malley, Senate President Thomas V. Miller, Jr., and House Speaker Michael E. Busch from the Office of the Comptroller of Maryland, July 16, 2009 -- See the June 2009 revenue memorandum.
http://www.marylandtaxes.com/finances/revenue/revenue/generalfund.asp

Governor Renews Commitment to Protecting Public Schools, Maryland Families, Office of the Governor, July 22, 2006 (first round of proposed budget cuts):
http://www.governor.maryland.gov/pressreleases/090722.asp

Regional and State Employment and Unemployment Summary, U.S. Bureau of Labor Statistics, August 21, 2009 (Note: The data at this link are updated monthly):
http://www.bls.gov/news.release/laus.nr0.htm

Governor Outlines $454 Million in Budget Cuts, Office of the Governor, August 25, 2009:
http://www.governor.maryland.gov/pressreleases/090825.asp

Governor O’Malley Announces Tax Amnesty Holiday, Office of the Governor, August 31, 2009:
http://www.governor.maryland.gov/pressreleases/090831.asp

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