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Financial States: MASS to NJ |
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THE U.S. FINANCIAL CRISIS
AND ITS EFFECTS ON CHILDREN, YOUTH, FAMILIES,
SCHOOLS AND SERVICES
STATES: MASSACHUSETTS TO NEW JERSEY
Updated on September 4, 2009These are chronologies of developments in the fiscal situations of States. States that are not currently shown will be added. Links to full texts follow the sequence of annotations. This page works best with Firefox or Explorer browsers. Massachusetts: Continuing Setbacks
Compiled from several sources named in the text and in the links below.
*** Office of the Governor, October 15, 2008: “On Wednesday, October 15, 2008, faced with an estimated budget deficit of $1.4 billion, Governor Deval Patrick started implementing a fiscal action plan to close the gap that includes more than $1 billion in immediate cuts and spending controls across State government, identifying additional revenues and a responsible draw on reserves. The announcement comes as the Administration has revised the State's revenue estimate, on which the budget is built, by approximately $1.1 billion.” Among many other reductions in varying degrees, the Fiscal Action Plan includes cuts in (a) Children’s Trust Fund; (b) Supportive Child Care; (c) Low-Income Child Care; (d) Grants to Head Start Programs; (e) Universal Preschool; (f) Professional Development; (g) Healthy Families Home Visiting Program; (h) Early Intervention Services; (i) School-Based Health Programs; (j) Services for Children and Families; (k) Child and Adolescent Mental Health Services; (l) some programs of the Department of Mental Retardation; (m) Summer Jobs Program for At-Risk Youth; (n) Kindergarten Expansion Grants; (o) Student and School Assessment; (p) Teacher Preparation and Certification; (q) Youth Build Grants; (r) Mentoring Matching Grants; (s) Teacher Content Training; (t) Payroll and Administrative Expenses for Public Colleges and Universities. *** Boston Globe, January 1, 2009: According to a report issued on December 31 by the governor’s Readiness Finance Commission, “the economic downturn, which has already prompted $1.4 billion in State cuts, prevented it from pursuing an initial goal of finding new revenue sources to pay for Patrick's Readiness Project, which aims to provide a free public education from preschool through the initial years of college. . . . Instead, the committee urged the adoption of several cost-saving measures, which would help school districts to stave off budget cuts that threaten programs. The report said those recommendations could yield at least $550 million in savings. *** Office of the Governor, January 7, 2009: “Facing a likely additional $1 billion budget gap this year, Governor Deval Patrick today filed legislation requesting expanded budget-cutting authority in order to avoid disproportionate cuts to programs and services residents rely on most during challenging economic times. . . . The expanded 9C power will give the Governor emergency budget authority over agencies outside of the Executive Branch – including the Legislature, the Judiciary, District Attorneys, Sheriffs, and other Constitutional Officers – and local aid. Without 9C authority, the Governor’s budget cutting powers are limited to Executive Branch agencies. In October, with revenues sharply declining, the Governor issued $1.4 billion in cuts and spending controls. At that time, many Constitutional Officers and departments outside the Executive Branch voluntarily offered to reduce their budgets.” *** Office of the Governor, January 15, 2009: In his State of the Commonwealth address, Governor Patrick said that “In October, we identified and closed a $1.4 billion gap in our State budget. With the economy continuing to deteriorate, we foresee the need for another $1.1 billion in cuts and other budget solves this month. At the end of this month, I will file an Emergency Recovery Plan to close this further gap. . . . I will also file a balanced budget proposal later this month for the coming fiscal year. Given the decline in State revenue, spending must be at levels significantly below what they have been in better times. No one's priorities will be spared. Local services will be cut, and in many cases, police, firefighters and teachers will face layoffs.” *** Office of the Governor, January 28, 2009: Governor Deval Patrick submitted his Fiscal Year 2010 budget proposal (House 1) which focuses on preserving core services and holds spending growth to 0.5% over current year spending. Together with an emergency plan (9C) for closing a $1.1 billion budget gap in the current fiscal year and a series of legislative provisions, these measures comprise the Patrick-Murray Administration’s Emergency Recovery Plan, a multi-pronged strategy to help stabilize and position the Commonwealth for long-term economic success.” *** Massachusetts Budget and Policy Center, January 28, 2009: This Center provides a preliminary analysis of the Governor’s FY 2010 budget and new FY 2009 9C cuts (as set forth by the Governor on January 28 -- see above). “The Governor proposes a combination of strategies to address a budget gap that he estimates at $3.5 billion. These include the following: (a) $1.63 billion in spending cuts and savings; (b) $587 million in new revenue from increasing the hotels and meals tax, eliminating the sales tax exemption for candy, sweetened beverages, and alcohol, and increasing various fees; (c) $586 million from the stabilization fund (a withdrawal of $489 million and a foregone deposit of $97 million) and; (d) $711 million in Federal Recovery Aid. This document discusses all of the Governor's proposed cuts." *** Office of the Governor, March 19, 2009: “As part of his Massachusetts Recovery Plan to secure the State’s economic future, Governor Deval Patrick today announced he will commit $168 million in federal education recovery funds to ensure every district in the Commonwealth reaches so-called foundation spending levels next school year. The Governor’s investment will give 166 districts the ability to preserve programs and avoid teacher layoffs. . . . The State’s historic education reform law established foundation budgets for communities, setting a minimum funding threshold districts must meet so that students receive a ‘fair and adequate’ education’” The announcement includes a list of districts in line to receive this funding. *** Office of the Governor, March 27, 2009: "Governor Deval Patrick today announced he will commit more than $30 million over two years in State and federal recovery funds to create an estimated 10,000 summer jobs for young people in 60 communities across Massachusetts. . . . With summer approaching, Governor Patrick plans to combine $6.67 million from the state’s YouthWorks summer jobs program with $3.1 million in public safety funds and $21.1 million in workforce development funds provided through the American Recovery and Reinvestment Act. The Governor’s approach will maximize State and federal resources, helping to increase the number of jobs for young people between the ages of 14-24 to an estimated 10,000. The federal recovery law provides the Executive Office of Labor and Workforce (EOLWD) with a total of $21.1 million through the Workforce Investment Act Title I Youth program, to be distributed by federal formula to serve young people in 16 local workforce investment areas. In order to stimulate the economy immediately, EOLWD anticipates that a majority of the workforce development funds will be spent this summer.” *** Office of the Governor, April 9, 2009: “Governor Deval Patrick today announced that $163 million in additional federal education Title I funds from the American Recovery and Reinvestment Act will go to many high-poverty school districts in Massachusetts. Governor Patrick has committed $620 million in federal stimulus funds for K-12 education, special education and higher education programs and services. He also recently announced an additional $300 million of low-interest college loans for students. *** Office of the Governor, April 14, 2009: “Governor Deval Patrick today outlined a plan for closing an immediate State budget gap of $156 million, and announced his commitment to working with lawmakers to solve what could be an additional $400 million gap by the end of the fiscal year. As part of his plan to close the immediate budget gap, the Governor will use a mixture of federal recovery funds, budget cuts and spending controls, mandatory staff furloughs, and the elimination of over 750 additional state positions through layoffs, attrition, and stringent new hiring limits for state agencies. Additionally, the Governor has tasked Administration and Finance Secretary Leslie Kirwan with beginning negotiations with State collective bargaining units over a full range of potential cost-cutting initiatives to help address the economic crisis going forward. . . . Specifically, the Governor’s plan includes using $128 million in federal recovery funds, $16 million in additional budget cuts and spending controls, and $12 million in savings from furloughs and workforce reductions.” Two budget charts are included with this press release. *** Office of the Governor, May 7, 2009: “Governor Deval Patrick will file legislation today to close an estimated $953 million shortfall for the remainder of Fiscal Year 2009, using a combination of federal stimulus aid, stabilization funds, and other solutions. The legislation comes on the heels of an historic $1 billion drop in April tax revenues compared to last April revenues, and after previous measures to close an over $3 billion gap for FY 2009. . . . To immediately close the FY09 gap, the Governor proposes using $412 million of State Fiscal Stabilization Funds included in the American Recovery and Reinvestment Act of 2009, which will allow the State to maintain its commitment to education. No community will see a reduction in its Chapter 70 aid this fiscal year. . . . The Governor’s proposal would allow for a draw of up to $461 million from the State’s Rainy Day Fund and suspend the $100 million deposit authorized in FY 2008. The bill also calls for a $15 million reduction to the Health Safety Net Trust Fund in order to meet projected deficiencies within the MassHealth program. Even with this reduction, the Trust Fund is expected to end its year with a surplus. Further, the Governor has secured a commitment from the Massachusetts Convention Center Authority to contribute $50 million from its reserves to help close the deficit. “ *** Office of the Governor, June 4, 2009: “Governor Deval Patrick today released a new Fiscal Year 2010 budget proposal following a dramatic and unanticipated revenue decline between January and April. The revised version of an already austere budget proposal reflects a revenue loss of $1.5 billion in the three months since the Governor filed his original recommendations, and is intended to serve as a blueprint for lawmakers currently negotiating the differences in their own budgets. While the $26.9 billion budget includes many difficult cuts, Governor Patrick’s proposal maintains his commitment to core services including education, public safety and health care. . . . The updated budget continues to hold Chapter 70 education aid harmless at the original FY09 level of $3.9 billion. As the Governor pledged earlier this year, the revised budget also includes an additional $168 million in federal stimulus funds to ensure every school district remains at foundation level. The Governor also maintained $4.5 million for Shannon Grants, $8 million for summer jobs programs for at risk-youth and continued his commitment to health care by maintaining eligibility standards and access. . . . The Governor’s budget does not include an increase in the sales tax, as he continues to seek meaningful pension, ethics and transportation reform before asking residents to pay more in broad-based taxes. . . . In light of the revenue decline that has occurred since January, the Governor has reduced the Administration’s use of the State’s Rainy Day Fund for FY10 in order to preserve more of the fund for future budgets.” *** Boston Globe, June 11, 2009: “State lawmakers agreed yesterday to end some of the most egregious pension abuses that have plagued the Massachusetts State retirement system for decade. . . . The moves on retirement reform followed a recent series of Globe stories that revealed how public officials had enhanced their pensions by exploiting special provisions in State pension law. *** Boston Globe, June 20, 2009: “A $27.4 billion State budget (was) approved yesterday by House and Senate lawmakers. . . . As Governor Deval Patrick began reviewing the budget package yesterday, healthcare advocates, and immigrant rights activists urged him to veto a provision that would eliminate coverage under Commonwealth Care, the state-sponsored healthcare program, for 28,000 legal immigrants. . . . Budget analysts also warned yesterday that the accounts used to maintain the State’s landmark healthcare reform laws are dangerously underfunded. Antigang, youth violence prevention, and elderly affairs programs would also see deep cuts in a budget that is to take effect July. . . . A host of new taxes, including a 1.25 percentage point increase in the state sales tax, were included to prevent even deeper reductions. . . . The lawmakers’ budget counts on $1.5 billion in federal stimulus money. It would draw $199 million from the State’s reserve account, leaving the balance at less than $600 million. The budget would also increase State employee insurance contributions by 5 percentage points.” *** Boston Globe, June 27, 2009: “Governor Deval Patrick said yesterday that he will sign more than $1 billion in tax increases, ending a months-long standoff with the Legislature and ensuring Massachusetts residents will pay more for everything, from satellite dishes to cheeseburgers. . . . The new sales tax rate, which will increase from 5 percent to 6.25 percent, will go into effect Aug. 1. . . . The statewide meals tax will also increase, from 5 percent to 6.25 percent, and municipalities will have the option to raise it up to 7 percent and keep the extra revenue for themselves. In addition, taxes will go up on satellite television users, and a sales-tax exemption on alcohol sold in retail stores will be eliminated. Municipalities will also be allowed to raise the local hotel tax by 2 percentage points. . . . Patrick had said he would agree to the lawmakers’ plan only after they agreed to overhaul the State’s ethics, pension, and transportation laws significantly. Over the past two weeks, House and Senate lawmakers approved plans on each of those items.” *** Boston Globe, July 8, 2009: “ State revenues took yet another plunge last month, ending the financial year $180 million below even the dourest projections and forcing leaders to choose between draining the State’s reserve account and making further cuts in a budget approved just last week. . . . It offers a coda to a disastrous year, which saw revenue drop $3.2 billion below initial expectations and change so rapidly that revised estimates never caught up with reality.” *** New York Times, July 14, 2009: “The new State budget in Massachusetts eliminates health care coverage for some 30,000 legal immigrants to help close a growing deficit. The affected immigrants, permanent residents who have had green cards for less than five years. are now covered under Commonwealth Care, a subsidized insurance program for low-income residents that is central to the groundbreaking health care law enacted here in 2006. . . . Gov. Deval Patrick has proposed restoring $70 million to the program, which would partly restore the immigrants’ coverage. But legislative leaders have balked, saying vital programs for other groups would have to be cut as a result. The cut, which would affect only nondisabled adults from 18 to 65 years old, would take effect in August unless the legislature approves Mr. Patrick’s proposal.” This refers to the budget passed on June 20 -- see above. (NOTE: On July 20, the New York Times reported that the legislature restored about 30 percent of funds for health care for immigrants.) *** Office of the Governor, July 16, 2009: “Moving to fulfill the promise of education reform for all students in Massachusetts, Governor Deval Patrick today announced sweeping legislation to improve public schools and close achievement gaps that persist despite the successes of the State’s landmark Education Reform Act of 1993. The proposal will more than triple the number of charter school slots and expand the State’s authority to intervene in underperforming schools. . . . The reform package includes the availability of additional Readiness Schools to operate as innovative in-district schooling options for all Massachusetts students and families. . . . The Governor’s intervention strategy outlines plans for a ‘Smart Cap’ lift on charter schools and for the creation of Readiness Acceleration Schools. The charter school initiative will expand and create successful charter schools that serve high-need students in Massachusetts’ lowest-performing districts. . . . The Readiness Schools initiative will also establish two types of innovative, in-district public schools that feature high degrees of flexibility and autonomy in the areas of curriculum, budget, school schedule and calendar, staffing, school district and school committee policies and provisions of local teacher contracts.” See more details in this announcement.. *** Office of the Governor, August 10, 2009: “As part of his Massachusetts Recovery Plan to secure the State’s economic future, Governor Deval Patrick today announced the Commonwealth has surpassed goals for the number of youth in summer employment, with well over 10,000 currently at work statewide. . . . The funds included $6.67 million from the state’s YouthWorks summer jobs program with $3.1 million in public safety funds and $21.1 million in workforce development funds provided through the American Recovery and Reinvestment Act. Youth were placed in jobs across industry sectors and trades, such as hospitals, parks, and non-profit organizations” *** Boston Business Journal, August 20, 2009: “The Massachusetts unemployment rate rose to 8.8 percent in July, up from 8.6 percent in June. . . . The State lost some 2,800 jobs last month, bringing the total job decline over the last year to 109,400.” *** New York Times, August 31, 2009: “State-subsidized health insurance for 31,000 legal immigrants here will no longer cover dental, hospice, or skilled-nursing care under a scaled-back plan that Gov. Deval Patrick announced Monday. . . . Mr. Patrick said his administration had struggled to find a solution ‘that preserves the promise of health care reform’ after the State legislature cut most of the $130 million it had previously allotted immigrants, to help close a budget deficit. . . . The new plan, which will cover permanent residents who have had green cards for less than five years, will cost the State $40 million a year. Some of the affected immigrants will be charged higher co-payments and will have to find new doctors, said Leslie A. Kirwan, Mr. Patrick’s finance director.” ***Boston Business Journal, September 2, 2009: “ Massachusetts will receive $14.7 million from pharmaceutical giant Pfizer, Inc, as part of a $2.3 billion multi-state settlement over improper marketing practices for its drugs. . . . The suit alleged that the improper marketing practices resulted in over-prescribing of Pfizer’s drugs, and therefore an over-charging to Medicaid programs across the country. The Massachusetts slice of the money will go to the Massachusetts Medicaid Program. _________________________________ Fiscal Action Plan Implemented, Office of the Governor, October 15, 2008 --
To view the October 15 TV presentation or read the transcript: http://www.mass.gov/?pageID=gov3terminal&L=3&L0=Home&L1=Media+Center&L2=Videos&sid= sid=Agov3&b=terminalcontent&f=text_2009-01-15_sotc&csid=Agov3
Governor Patrick Outlines Emergency Recovery Plan, Office of the Governor, January 29, 2009 -- Click for overall budget and documents:http://www.mass.gov/bb/h1/fy10h1/
Preliminary Analysis: The Governor’s FY 2010 Budget and New FY 2009 9C Cuts, Massachusetts Budget and Policy Center, Boston, January 28, 2009:http://www.massbudget.org/documentsearch/findDocument?doc_id=646*** The 2009 budget summary, list of cuts by account, the October 2008 reductions and the January 2009 reductions are available at:http://www.mass.gov/?pageID=afsubtopic&L=4&L0=Home&
L1=Budget%2c+Taxes+%26+Procurement&L2=State+Budget&
L3=FY2009+Budget+Information&sid=Eoaf*** The FY 2010 Governor’s budget recommendation and related information are available at:http://www.mass.gov/?pageID=afsubtopic&L=4&L0=Home&
L1=Budget%2c+Taxes+%26+Procurement&L2=State+Budget&
L3=FY2010+Budget+Information&sid=Eoaf
Governor Patrick Pledges $168 Million in Federal Recovery Funds for Schools Across Massachusetts, Office of the Governor, March 19, 2009:http://www.mass.gov/?pageID=gov3pressrelease&L=1&L0=Home&sid=Agov3&
b=pressrelease&f=090319_education_investment&csid=Agov3*** The public can track massachusetts recovery-related spending at:http://www.mass.gov/recovery
Governor Patrick Commits $30 Million Over Two Years in State and Federal Recovery Funds to Create 10,000 Summer Jobs for Youths, Office of the Governor, March 27, 2009:http://www.mass.gov/?pageID=gov3pressrelease&L=1&L0=Home&sid=Agov3&
b=pressrelease&f=090327_summerjobs_recovery+funds&csid=Agov3
Governor Patrick and Congressional Delegation Announce $163 Million in Federal Title I Funds for High-Need School Districts, Office of the Governor, April 9, 2009:
http://www.mass.gov/?pageID=gov3pressrelease&L=1&L0=Home&sid=Agov3&
b=pressrelease&f=090409_Title_I&csid=Agov3
Governor Patrick Moves to Close Additional Budget Deficit, Office of the Governor, April 14, 2009:
http://www.mass.gov/?pageID=gov3pressrelease&L=1&L0=Home&sid=Agov3&
b=pressrelease&f=090414moves_on_deficit&csid=Agov3
Governor Patrick Files Budget Deficit Plan to Address $935 Million Budget Gap (for FY 2009), Office of the Governor, May 7, 2009
http://www.mass.gov/?pageID=gov3pressrelease&L=1&L0=Home&sid=Agov3&
b=pressrelease&f=090507_legislation_budge_gap&csid=Agov3
Governor Patrick Releases Updated Budget for Fiscal Year 2010, Office of the Governor, June 4, 2009:
http://www.mass.gov/?pageID=gov3pressrelease&L=1&L0=Home&sid=Agov3&
b=pressrelease&f=090604_updated_budget_proposal&csid=Agov3
Lawmakers Agree on Pension Bill, Boston Globe, June 11, 2009:
http://www.boston.com/news/local/massachusetts/articles/2009/06
/11/lawmakers_agree_on_pension_overhaul/
*** Also see details from the Governor:
http://www.mass.gov/?pageID=gov3pressrelease&L=1&L0=Home&sid=Agov3&
b=pressrelease&f=090616_pension_reform&csid=Agov3
Budget Cuts Draw Bleak Predictions, Calls for Veto, Boston Globe, June 20, 2009:
http://www.boston.com/news/local/massachusetts/articles/2009/06
/20/budget_cuts_draw_bleak_predictions_calls_for_vetoes/?page=1
*** Also see a budget analysis in The Budget Monitor, July 9, 2009:
http://www.massbudget.org/documentsearch/findDocument?doc_id=681
Patrick Stresses Upside of Tax Hikes, Boston Globe, June 27, 2009 (in signing the tax increases in response to the compromise on his reform agenda):
http://www.boston.com/news/local/massachusetts/articles/2009/06
/27/patrick_upbeat_on_1_billion_in_tax_increases/
*** The Governor’s June 26 summary of the status of his reform agenda -- with links to details -- is available at:
www.mass.gov/governor/reforms
*** To hear the Governor’s reform agenda on YouTube:
http://www.youtube.com/watch?v=2pFVoEY-oTw&feature=channel_pageMass Revenues Plummet Again, Boston Globe, July 8, 2009:
http://www.boston.com/news/local/massachusetts/articles/2009/07
/08/mass_revenues_plummet_again
Massachusetts Takes a Step Back From Health Care for All, New York Times, July 14, 2009 (refers to coverage for immigrants):
http://www.nytimes.com/2009/07/15/us/15insure.html?_r=1&ref=us
*** On July 29, the New York Times reported that the legislature restored about 30 percent of funds for health care for immigrants:
http://www.nytimes.com/2009/07/30/us/30immigrant.html?ref=us
Governor Patrick Pushes to Improve Public Schools, Offer All Students Access to a World-Class Education, Office of the Governor, July 16, 2009:
http://www.mass.gov/?pageID=gov3pressrelease&L=1&L0=Home&sid=Agov3&
b=pressrelease&f=090716_improve_access_education&csid=Agov3
Patrick Administration Surpasses Goal of 10,000 Youth Employed in Summer Jobs, Office of the Governor, August 10, 2009:
http://www.mass.gov/?pageID=gov3pressrelease&L=1&L0=Home&sid=Agov3&
b=pressrelease&f=090810_summer_jobs_for_youth&csid=Agov3
Mass. Unemployment Hits 8.8% in July, Boston Business Journal, August 20, 2009:
http://www.bizjournals.com/boston/stories/2009/08/17/daily32.html
Massachusetts Cuts Back Immigrants’ Health Care, New York Times, August 31, 2009:
http://www.nytimes.com/2009/09/01/health/policy/01mass.html?_r=1&th&emc=th
Massachusetts Gets Chunk of Pfizer Settlement, Boston Business Journal, September 2, 2009:
http://boston.bizjournals.com/boston/stories/2009/08/31/daily30.html
Michigan: Effects of Rising Unemployment and Falling Tax Revenues
Compiled from several sources named in the text and in the links below
*** The Detroit News, November 7, 2008: “Michigan's deepening economic crisis will force Gov. Jennifer Granholm to order budget cuts by year's end that could be in the hundreds of millions of dollars and impact spending across State government, possibly including aid to public schools. Granholm also asked lawmakers on November 6 to pass legislation giving authority to State financial regulators to put a 90-day freeze on foreclosures, and she directed the State Treasurer to make $150 million available during the credit crunch to help small businesses meet payroll and to help get loans to citizens who want to buy large items, such as automobiles. The governor announced she will make executive-order cuts, probably in December, but won't have details on programs affected or the amount to be slashed until the University of Michigan makes its State and national economic forecasts on November 20-21. . . . Asked about the possibility of school-aid reductions, she said: ‘Nobody wants to cut school funding in the middle of the year,’ but added she'd wait for the University of Michigan forecast before making a decision. . . . The Director of the House Fiscal Agency said ‘School aid depends on sales tax. And retail sales looking ahead through the Christmas season are not expected to be good.’. . . House and Senate fiscal analysts report that the State budget for the fiscal year that started October 1 is probably $300 million to $900 million out of whack, because of the global financial collapse, the foundering auto industry and the overall languishing economy.” *** The Detroit News, November 22, 2008: “Following a University of Michigan economic forecast that shows the State will continue to bleed jobs over the next two years, Gov. Jennifer Granholm announced Friday she will make State budget cuts within two weeks. Economists predicted the reeling economy will cost the State 124,000 jobs in 2009, another 49,000 in 2010 and $500 million in anticipated tax receipts over the two years. . . University economists said State unemployment will surpass 10 percent in 2009 and 2010 and 173,000 jobs will be lost over those two years. . . . . The general fund, projected to fall by 7.8 percent this fiscal year to $8.63 billion, is the State's main discretionary checkbook. . . The governor had said she will base her budget recommendations on the U-M forecast, which was released Friday (November 21).” *** Office of the Governor, December 10, 2008: “State Budget Director Robert L. Emerson today formally presented to a joint session of the State House and Senate Appropriations Committees Governor Jennifer M. Granholm's proposal to cut $134 million from the fiscal year 2009 budget. . . . (The Governor’s) Executive Order 2008-21 includes: (a) $40 million in program and policy cuts, including closure of one state prison, one prison camp and the Adrian Training Facility for youth offenders; (b) $10 million in administrative cuts; (c) $29 million in restricted revenue reductions; and (d) $52 million in savings from lower-than-expected caseloads. . . . Emerson told lawmakers that State Treasurer Bob Kleine has notified the governor that general fund revenues are currently expected to fall $540 million below the estimates made at the May Consensus Revenue Estimating Conference. . . . He also cautioned that additional cuts will likely be needed this year to address ongoing economic challenges.” (The budget cuts were approved by the House and Senate Appropriations Committee and were later approved by the House and Senate.) *** Detroit News, January 9, 2009: “Michigan's budget is out of whack by $917 million this year and the shortfall could mushroom to a whopping $1.6 billion next year, according to a tax revenue forecast adopted by State fiscal experts today. That means there likely will be more executive order budget cuts in February to balance the books, but State public school spending may not need to be slashed in mid-year, aides to Gov. Jennifer Granholm said. The State's general fund will be around $8.3 billion and the school aid fund will be nearly $11.4 billion this year. The general fund -- the state's main checkbook -- is down almost 6 percent from last year and the school aid fund is off by 1.3 percent from 2008.” *** Office of the Governor, January 29, 2008: In her State of the State Address, Governor Granholm announced “two new initiatives to grow jobs in Michigan. . . . First: the Michigan Job Creation Tax Credit -- a one time offer for businesses in the 50 fastest-growing industries in the country. . . . Second: I will create the Michigan Invests! Fund - a fund that will put Michigan money to work building Michigan's economic future. Invest Michigan! will give high-growth companies the investment capital they need if they grow right here. . . . The budget I'll present to the Legislature next month will contain: $200 million in additional cuts and reforms, a $100 million deposit in the state's rainy day fund, every new initiative I'm proposing will be paid for, no new fees, and no new taxes.” Among other things, the Governor also described reforms in State government; an economic stimulus package with an emphasis on alternative energy; proposed increases in the investment in K-12 schools and significantly expansion of early childhood education; proposed full-day kindergarten in all school districts; and a 21st Century Schools Fund to replace large impersonal high schools that fail, with smaller schools. *** Office of the State Budget, February 12, 2009: “State Budget Director today presented Governor Jennifer Granholm’s 2010 executive budget to a joint session of the Michigan Senate and House Appropriations Committees. “The overall budget totals $44.2 billion and includes $8.9 billion in general fund spending, $11.4 billion from the School Aid Fund, and recognizes $13.3 billion in federal revenues. To address the State’s ongoing structural deficit, Granholm’s proposal recommends $670 million in spending reductions and government reforms. . . . Recommendations include the use of $500 million in increased federal funding for Medicaid. . . . Additional funding is expected through the federal economic package. . . . Government reforms in Governor Granholm’s 2010 budget include: (a) closing several additional correctional facilities; (b) closing the Department of Community Health’s Mount Pleasant Center for Persons with Developmental Disabilities, transferring the patients to community care settings, as appropriate; (c) closing the Department of Human Services’ Maxey Woodland Training Center; . . . (d) closing the Michigan State Police crime lab in Marquette; (e) ending financial support for State Fairs in Detroit and Upper Peninsula; (e) overhauling the State’s higher education scholarship programs; . . .. (f) combining the Cooperative Extension Service and Agricultural Experiment Station; (g) consolidating energy programs; . . . (h) eliminating the Department of Histories, Arts, and Libraries and funding for State arts grants; (i) opening a one-stop-shop for business; . . . . (j) seeking employee concessions; (l) expanding investment in community-based monitoring for parolees; (j) expanding transition of seniors and the disabled from nursing homes to community care settings; (l) eliminating more than $50 million in earmarks; . . . (m) $120 million in cuts in the Department of Corrections; . . . (n) $106 million in cuts in the Department of Community Health; . . . (o) $164 million in cuts to K-12 spending, which includes a reduction in per-pupil foundation allowance of $59 per student; and (p) $100 million in cuts to higher education.” *** Office of the Governor, March 20, 2009: “In her weekly radio address, Governor Jennifer M. Granholm today said that the billions of dollars the State is slated to receive through the federal economic recovery act will help Michigan citizens and families by putting people to work, by protecting health care for the vulnerable, making college more affordable, and keeping our communities safe. Citizens who are hurting during these challenging times will begin to feel the impact of the economic recovery program as early as Monday when unemployment checks will increase by $25 per week, Granholm said. And on April 1, citizens receiving food assistance will see an increase in their monthly food allotments. Also on that day, tax cuts for families and businesses will take effect. Granholm added that last week, the federal government announced that $380 million will be coming to Michigan for weatherization programs that will help families reduce their home heating costs and help us invest in the new energy economy. And, just this week, the state House of Representatives approved legislation that authorizes $873 million in spending for road and transit projects across the State that will create some 25,000 jobs. The governor said that there are billions of dollars available through competitive grant opportunities in the stimulus funds.” *** Office of the Governor, March 31, 2009: “Governor Jennifer M. Granholm today announced that Michigan's 29 federally qualified health centers will receive more than $8.5 million from the American Recovery and Reinvestment Act, allowing the centers to help an additional 53,749 patients -- including 27,621 uninsured -- over the next two years. The Recovery Act grants, administered by the U.S. Department of Health and Human Services, will create or retain 152 health-care jobs in Michigan.” *** Office of the Governor, April 13, 2009: “Governor Jennifer M. Granholm today signed legislation that provides jobless Michigan workers with up to seven additional weeks of unemployment benefits. . . . Granholm pointed out that these extended benefits are funded by the federal Recovery Act, which means Michigan employers will not be assessed for them.” *** Detroit News, April 14, 2009: “Collections from major taxes continue to plummet, sinking the recession-wracked State budget deeper into deficit, Gov. Jennifer Granholm said Monday. . . . State economists say revenues were $100 million behind projections in January and February, and it appears March tax receipts will be down by a similar amount. Granholm said $2.1 billion in unrestricted cash from the federal stimulus package over the next two years won't be enough to rescue the withering budget. . . . Granholm has proposed deep cuts in next year's budget that begins Oct. 1 -- estimated to have a $1.6 billion deficit -- including 1,500 State employee layoffs, closure of prisons and a mental health facility and elimination of a State department. Budget officials have said some of those cutbacks may have to be made earlier to balance this year's budget.” *** Times Herald. Port Huron, May 3, 2009: “Michigan leads the nation with a jobless rate of 12.6%, up 5% in a year. Michigan and Rhode Island are the only States losing population. With the auto industry on the ropes, tax revenues are shrinking even faster than feared.” *** Office of the Governor, May 5, 2009: “State Budget Director Bob Emerson today presented Governor Jennifer M. Granholm's Executive Order 2009-22 to a joint session of the House and Senate Appropriations Committees to help eliminate a shortfall in the 2009 State budget caused, in large part, by the massive restructuring in the domestic auto industry. Executive Order 2009-22, the second issued during the current fiscal year, reduces spending by nearly $350 million, achieving $304 million in the general fund savings. . . . According to State officials, the State budget is the product of the worst economic downturn since the 1930s. State general fund revenues are projected to decline 21 percent from actual FY 2008 collections. When adjusted for inflation, the decline in revenues is 23.5 percent, by far the largest one-year decline in at least 50 years and twice the 11.5 percent decline recorded in the severe recession of 1981. . . . The action taken today preserves critical safety-net services for Michigan families, including Medicaid eligibility and child welfare programs along with funding for higher education, community colleges, and school aid. . . . The executive order calls for temporary layoffs for all state employees in non-essential positions that will result in a shutdown of most State government operations on six days between now and September 30. . . . Many of the executive order budget cuts advance spending reductions outlined in the governor's 2010 budget recommendation, which called for $670 million in spending reductions and $230 million in additional revenue from the closing of tax loopholes. Revised revenue figures for the current and upcoming fiscal years will be released when the Revenue Estimating Conference convenes May 15. ‘In addition to these cuts we will use federal Recovery Act dollars to address the cyclical budget problems we're experiencing, which is what the Recovery Act was intended for,’ Emerson said.
” *** Michigan Department of the Treasury, May 15, 2009: “Due to significant economic weakness, job declines, and new tax credits . . . FY 2009 General Fund-General Purpose revenue is forecast to decline 21.0 percent . . . down $908.4 million from the January 2009 Consensus estimate. . FY 2009 School Aid Fund revenue is forecast to decrease 4.8 percent . . . $412.5 million below the January 2009 Consensus estimate. FY 2010 General Fund-General Purpose revenue is forecast to decrease 4.8 percent . . . . $888.8 million below the January 2009 Consensus estimate. FY 2010 School Aid Fund revenue is forecast to decline 1.5 percent . . . $504.7 million less than the January 2009 Consensus estimate.” *** Office of the Governor, June 9, 2009: “The Department of Management and Budget today announced that most Michigan State government offices will be closed for six days this summer to accommodate the temporary, unpaid furlough of State employees. . . . The unpaid furlough days will save the State $21.7 million before September 30, the end of the State's fiscal year. Approximately 37,400 state employees will be furloughed for the six days while another 15,500 are exempt to maintain public health and safety services.” *** Detroit News, June 11, 2009: “A top credit rating agency gave Michigan officials high marks Wednesday for managing the budget crisis and says the state is ‘weathering the downturn’ caused by the collapse of domestic automakers. Standard & Poor's rates Michigan general obligation bonds AA-, which is a low-risk investment rating. . . . The Standard & Poor's report says uncertainty hangs over the budget largely because of "further deterioration of the Big Three automakers. Credit analyst Jane Hudson Riley warned, however, that ‘actions to unduly delay difficult budget decisions would contrast with past discipline and we believe would be cause for concern.’" * ** U.S. Bureau of Labor Statistics, July 17, 2009: “Michigan’s seasonally adjusted unemployment rate for June 2009 was 15.2 percent -- up from 8.1 percent in June 2008. Michigan is among the States with statistically significant unemployment rates during that period.” (NOTE: On August 19, Michigan’s Department of Energy, Labor & Economic Growth announced that the seasonally adjusted unemployment rate for July 2009 was 15.0 percent -- down two-tenths of a percentage point as compared with June.) *** Detroit News, August 19, 2009: Gov. Jennifer Granholm predicted Tuesday lawmakers will pass a budget next month and avoid an Oct. 1 State government shutdown despite ‘tempers flaring’ in budget talks. . . . Granholm and legislative leaders have been huddling behind closed doors for months t rying to reach an agreement on the fiscal year 2010 budget, which takes effect in October.” NOTE: Michigan is one of the few States whose budget deadline is later than June 30. _________________________________ Governor Granholm to Slash Budget as Economy Worsens, The Detroit News, November 7, 2008: http://www.detnews.com/apps/pbcs.dll/article?AID=/20081107/POLITICS/811070414
Gov to Slash Budget Over Forecast, Detroit News, November 22, 2008:
http://www.detnews.com/apps/pbcs.dll/article?AID=/20081122/BIZ/811220366
Governor Presents “First Step” to Address Fiscal Year 2009 Challenges, Office of the Governor, December 10, 2008: http://www.michigan.gov/gov/0,1607,7-168--204882--,00.html
State Budget Shortfall Hits $917 Million, Detroit News, January 9, 2009:http://www.detnews.com/apps/pbcs.dll/article?AID=/20090109/METRO/901090431/1409/METRO
Creating Opportunity in a Changing World -- Diversifying Our Economy, Educating our People (State of the State Address), Office of the Governor, January 29, 2009:http://www.michigan.gov/gov/0,1607,7-168--184537--,00.html
Governor Granholm’s 2010 Executive Budget Addresses Structural Deficit, Protects Families, Office of the State Budget, February 12, 2009:http://www.michigan.gov/documents/budget
/FY10_Budget_Release_FINAL_267042_7.pdf*** For details of the executive budget, see:http://www.michigan.gov/documents/budget/budget20small_267048_7.pdf
Granholm Says Economic Recovery Will Help Michigan Families, Office of the Governor, March 20, 2009:http://www.michigan.gov/gov/0,1607,7-168--211197--,00.html*** The website on Michigan’s Recovery & Reinvestment Plan was launched in March, 2009:http://www.michigan.gov/recovery
Michigan’s 29 Community Health Centers to Receive $8.5 Million Under Recovery Act, Office of the Governor, March 31, 2009:http://www.michigan.gov/gov/0,1607,7-168--211835--,00.html
Governor Granholm Signs Legislation Extending Jobless Benefits Up to Seven Weeks, Office of the Governor, April 13, 2009:http://www.michigan.gov/gov/0,1607,7-168-23442_21974-212622--RSS,00.html
Michigan’s Budget Deficit Gets Deeper, Detroit News, April 14, 2009:http://www.detnews.com/article/20090414/POLITICS02/904140348
/Michigan+s+budget+deficit+gets+deeper
Hard Choices Michigan’s Only Option, Times Herald. Port Huron, May 3, 2009:http://www.thetimesherald.com/article/20090503/OPINION01/905030325/-1/NEWSFRONT2/Hard+choices+Michigan+s+only+option
Executive Order Issued to Address State Budget Deficit, Office of the Governor, May 5, 2009:http://www.michigan.gov/gov/0,1607,7-168-23442-214240--,00.html*** Executive Order No. 2009-22, which lists all of the budget cuts, is available at:http://www.michigan.gov/gov/0,1607,7-168-21975---,00.html
Administration Estimates: Michigan Economic and Revenue Outlook, Michigan Department of the Treasury, May 15, 2009 -- Scroll to Revenue Reports:http://www.michigan.gov/treasury/0,1607,7-121-44402_44404---,00.html
State Offices Will Close Six Days This Summer to Accommodate Unpaid Furlough Days for State Employees, Office of the Governor, June 9, 2009:http://www.michigan.gov/gov/0,1607,7-168--216277--,00.html
Michigan Bonds Get a Low-Risk Rating, Detroit News, June 11, 2009:http://www.detnews.com/article/20090611/POLITICS02/906110383/
Michigan-bonds-get-a-low-risk-ratingRegional and State Employment and Unemployment Summary, U.S. Bureau of Labor Statistics, July 17, 2009:http://www.bls.gov/news.release/laus.nr0.htmGranholm: Budget in Sept, Detroit News, August 19, 2009:http://www.detnews.com/article/20090819/POLITICS02/908190364/Granholm--Budget-in-Sept. Minnesota: Dramatic Plunge Since May 2008
Compiled from several sources named in the text and in the links below. *** Office of the Governor, May 18, 2008: “Governor Tim Pawlenty and legislative leaders have agreed on a plan to balance the State budget without raising taxes while providing significant tax relief for Minnesotans. The agreement erases a projected $935 million deficit and includes the Governor’s plan for a property tax cap and tax relief for veterans and military members. . . . The agreement includes a tax cap that will limit cities and counties to an increase of 3.9 percent per year. Governor Pawlenty’s property tax cap and related relief is projected to save taxpayers $78.5 million in 2009 and $460.5 million over the next three years. Also, cities and counties will receive additional aid.” *** Minnesota Management and Budget Office, November 2008: “ Revenues are expected to fall $412 million (1.3 percent) below prior estimates. When combined with small increases in spending, the result is a $426 million deficit for the current biennium. FY 2010-11 revenues are now forecast to fall 9.4 percent below previous estimates, reducing projected revenues by $3.321 billion. That revenue reduction, combined with projected spending increases of $580 million, increase the expected budget deficit for the coming biennium to $4.847 billion.” *** Office of the Governor, December 4, 2008: In response to the budget forecast announcement (above), “Governor Pawlenty announced immediate actions to begin addressing the challenge. As a first step, he directed State government agencies to immediately cut back on discretionary spending. The Governor’s reduction order targets 10 percent of unspent operating funds in the budget period that ends June 30, 2009 and would save approximately $25 to $50 million that would be used to reduce the current shortfall. State agencies will submit detailed plans to meet this target by January 1. Areas exempted from these immediate State agency actions include public safety, military and veterans affairs, and corrections. . . . These steps are in addition to hiring restrictions placed on state agencies and boards in February 2008.” *** Office of the Governor, December 19, 2008: “Governor Tim Pawlenty today announced a plan to use the remaining $155 million in reserve funds and trim $271.4 million in State expenditures to balance the State’s budget for the current fiscal year. . . . Pawlenty said, ‘These reductions in State spending reflect our priorities to protect funding for K-12 education, public safety, military, and veterans. As much as possible, we have worked to minimize the impact of these cuts by reducing accounts with surplus balances or excess funds that have not been spent or committed to projects.’ . . . Through a process known as unallotment, the Governor has the authority to reduce the amount of State spending to prevent a deficit. Minnesota law requires a balanced budget by the end of each two-year budget cycle. The current two-year budget period (FY 2008-09) began on July 1, 2007 and runs through June 30, 2009. The State general fund budget is $34.6 billion. For the current budget period, Minnesota has a projected shortfall of $426 million. Applying the $155 million budget reserve to the projected deficit leaves a remaining deficit of $271.4 million that is being addressed through reductions in State spending.” (The Governor’s statement includes details on reductions in specific programs and services.) *** Minnesota Public Radio, Twin Cities, December 19, 2008: “Gov. Tim Pawlenty's budget cuts protected K-12 education, but Minnesota's higher education system took a big hit. The governor is reducing appropriations to the University of Minnesota and the Minnesota State Colleges and Universities System by $40 million dollars. Gov. Pawlenty says the cuts will be split equally between the State's two university systems, $20 million from the University of Minnesota and $20 million from the Minnesota State Colleges and Universities system (MnSCU).” *** Minnesota Public Radio, Twin Cities, December 26, 2008: “School enrollment keeps falling in Minnesota, and with it schools will have to do with fewer dollars from the State. Educators attribute the lower numbers of students to a tough housing market, an aging population and a lower birth rate. Statewide, 90 percent of school districts should see declining enrollment by next year, according to a 2006 analysis by the state House of Representatives. That could put even more budget stress on Minnesota schools, already likely to face pressures from the State of Minnesota's huge budget deficit next year.” *** Minnesota Budget Project, Minnesota Council of Nonprofits, December 2008: “The Minnesota Budget Project decided to take a deeper look at State investments over the past ten years in four key areas important to the well-being of Minnesotans and their ability to succeed. These areas are: (a) E-12 education; (b) higher education; (c) child care assistance; (d) affordable housing and homelessness prevention. The resulting report (The Lost Decade: Taking a Closer Look at Minnesota’s Public Investments in the 2000s) finds that the choices to cut spending in past deficit years have taken their toll.” *** Office of the Governor, January 7, 2009: “Governor Tim Pawlenty and key legislators today announced a bipartisan proposal that will require Minnesota school districts and charter schools to combine efforts to reduce costs. The proposal will compel schools to pool limited resources in order to deliver more cost-effective services, redirect administrative costs, and reduce duplication. . . . Under the Minnesota K-12 Shared Service proposal, school districts and charter schools will be able to pool their purchasing power for information technology, food services, supplies and equipment, operations, transportation, and other goods and services. . . . The Minnesota Department of Education will create and maintain a list of preferred vendors for various Shared Services. Once the list is compiled, MDE will create contracts with those preferred vendors on behalf of the State and work with school administrators, educators, school board members and other stakeholders to develop and implement a two year shared services plan to help schools best utilize those vendors for cost savings. Governor Pawlenty is hopeful that the Legislature will pass a bill for this initiative sooner rather than later so that districts may realize savings during the 2009-2010 school year.” *** Office of the Governor, January 13, 2009: Citing a unique opportunity for reform in the face of difficult economic circumstances, Minnesota Governor Tim Pawlenty and Wisconsin Governor Jim Doyle today announced a nation-leading effort to identify potential shared services between their States. At ceremonies in Madison and St. Paul and today, Governors Doyle and Pawlenty signed Executive Orders directing state agency commissioners and secretaries to identify possible cooperative service agreements between Wisconsin and Minnesota’s State agencies. . . . Three areas that could offer significant efficiencies through cooperative efforts include (a) procurement; (b) facilities and vehicles; and (c) cooperative functions. *** Office of the Governor, January 15, 2009: In his State of the State address, Governor Pawlenty outlined a number of proposals, including the Minnesota Jobs Recovery Act. Among the various priorities Governor Pawlenty outlined are several pertaining to education and human services: (a) make Minnesota the nation’s leader in teacher preparation and training by passing the Teaching Transformation Act; (b) expand Q Comp to every school district and charter school in the State to provide additional funding to schools and continue the transition to paying for performance; (c) provide additional K-12 funding through a new program that will provide up to an additional 2 percent per student for every student meeting standards to show reasonable growth toward improvement; (d) fix the current teachers union-school district labor system that allows teachers to strike; (e) pass school district shared services legislation to save on purchases of information technologies, food services, textbooks, and supplies; (f) move the higher education system more aggressively toward online learning and pass a tuition cap; (g) incentivize counties to combine their human service operations into no more than 15 regional enterprises; (h) freeze all State government wages for the next two years and require a wage freeze for any Minnesota government entity that accepts State money.” *** Hometown Source (Minnesota & Western Wisconsin), January 27, 2009: “Gov. Tim Pawlenty today (Tuesday, Jan. 27) unveiled a balanced budget that “sets priorities for a better future.” The Governor’s plan focuses on strategic investments to spur job growth and improve K-12 education.
The Governor’s budget proposal for FY 2010-11 would spend $33.61 billion, a 2.2% reduction from current FY 2008-09 general fund expenditures of $34.36 billion.
The budget proposal erases a projected budget shortfall of $4.8 billion. Spending reductions and other savings total $2.5 billion while the use of federal stimulus funding and other resources provides $3.2 billion. New spending initiatives, tax cuts, and placing $250 million in the budget reserve total $860 million. . . . The governor’s plan includes $41.45 million in FY10-11 to expand the State’s nation-leading pay for performance program, Q Comp, to every school in the State. Q Comp funding would be comparable to a 5 percent increase in the general education formula for districts not currently in the program. The governor also recommends $91 million in FY10-11 for ‘Pay for Progress,’ a new initiative that links increases in education funding to student achievement.” *** Daily Planet, Twin Cities, January 28, 2009: On January 27, “the Governor proposed cutting MnSCU’s general operating fund base by $146 million, or 10.7%. It would be up to the Minnesota State Colleges and Universities System (MnSCU) Board to figure out how to apply the cuts.” *** Minnesota Management & Budget, March 3, 2009: In its February forecast, this office said that “there has been no material change in Minnesota’s FY 2010-11 budget outlook. There have, however, been significant changes affecting the forecast. A $1.166 billion reduction in forecast revenues . . . was more than offset by $1.359 billion in general fund assistance from the federal stimulus package. After factoring in a small ($152 million) spending increase and the carry-forward of FY 2009’s projected ending balance ($236 million), the projected shortfall for the 2010-11 biennium falls by $277 million to $4.570 billion. In November, the shortfall was $4.847 billion. In both this forecast and the November forecast, expected revenues fall short of projected expenditures by more than 13 percent. A budget deficit is no longer forecast for the 2008-09 biennium.” *** Office of the Governor, March 17, 2009: “Governor Pawlenty today sent a letter to the legislature, transmitting revisions to the budget proposal he outlined in January. The budget revisions take into account the February Budget Forecast (see MN Management & Budget, March 3 above), the availability of stimulus funding, and other updates. Under the Governor’s revised budget, the total amount of State general fund expenditures in FY 2010-11 would be $32.6 billion, a reduction of approximately 4 percent from the $33.9 billion in general fund expenditures in the current FY 2008-09 budget. . . . (Among the proposed budget changes are the following.) EDUCATION: Governor Pawlenty’s January budget increased spending for K-12 education even during these challenging economic times. Federal stimulus funding makes it possible to achieve significant General Fund savings in K-12 education while providing an even larger K-12 funding increase than the Governor previously proposed. The revised recommendations include using $424 million in FY10-11 of federal stabilization funds for this purpose. This will increase Governor Pawlenty’s K-12 funding recommendation to $14.1 billion. HIGHER EDUCATION: Previously proposed reductions in funding for the University of Minnesota and the Minnesota State Colleges and University system would be restored. With higher education funding levels being restored, Governor Pawlenty renewed his recommendation that both systems freeze or cap tuition increases. In addition, qualified students should receive increases in student grant funding due to an increase in the Pell grant program under the federal stimulus package. HUMAN SERVICES: Certain eligibility-related funding reductions would be delayed until January 2011 in light of the requirements of the federal stimulus legislation. These delayed reductions will temporarily restore eligibility for Medical Assistance as well as MinnesotaCare eligibility for parents. . . . Governor Pawlenty’s budget plan details by category recommended spending levels for FY 2010-11 and for FY 2012-13. For the FY 2012-13 budget period, the Governor recommended freezing Health & Human Services and Property Tax Aids & Credits at FY 2010-11 levels and reducing State Government funding in order to balance the budget over that four-year timeframe.” (NOTE: The Governor’s presentation includes a one-page summary that shows the State emerging from the 2012-13 biennium with a small surplus under his plan.) *** Minnesota Office of Management and Budget, April 10, 2009: In this report, the Office of Management and Budget states that “ net general fund revenues totaled $2.104 billion in February and March -- $46 million (2.1 percent) less than forecast. Individual income tax and sales tax receipts were both below levels forecast in February, while corporate tax receipts, motor vehicle sales receipts, and other tax and fee revenues were above forecast. Fiscal year 2009 receipts now total $11.041 billion -- 4 percent less than at the end of the third quarter of fiscal 2008. . . . Data from the U.S. Department of Labor shows the four-week moving average of continuing unemployment claims in Minnesota now totals more than 128,000. This is more than 50,000 above last year’s level and exceeds the peak number of continuing claims in the past recession by more than 40,000.” *** KEYC-12 Fox News, Mankato, May 19, 2009: “The Minnesota legislature has adjourned (at midnight May 18) after a raucous final half hour spent on a bill to raise taxes. The bill would close a 2.7 billion dollar budget gap by delaying payments to schools and increasing taxes on couples who make more than a quarter of a million dollars a year, alcohol drinkers, and some credit card companies. A spokesman says Governor Tim Pawlenty will veto the bill.” *** Office of the Governor, May 19, 2009: “Governor Tim Pawlenty and members of his cabinet will be working in the morning to finish the job left undone by DFL legislators. ‘The basic responsibility of the legislature is to responsibly pass a balanced budget and the DFL failed,’ Governor Pawlenty said. ‘They spent $34 billion when they only had $31 billion available. But politics as usual around this place is over. We’re not going to have a special session or a State government shutdown. Tough decisions are ahead, but those decisions need to be made if we are going to get through this difficult economic time and build towards a better future.’ Governor Pawlenty also said, ‘The session was a victory for Minnesota taxpayers because DFL efforts to raise just about every tax on the books were defeated.’” *** Minnesota Public Radio, June 4, 2009: Tom Hansen, Commissioner of the Minnesota Office of Management and Budget “started the unallotment process today by notifying Gov. Pawlenty that conditions exist for the governor to balance the budget on his own. . . . . (The Commissioner’s letter) is a necessary step to allow Pawlenty to balance the budget on his own. Pawlenty announced last month that he would use his unallotment power after he failed to reach a budget deal with Democrats in control of the Legislature.” *** Minneapolis/St. Paul Business Journal, June 16, 2009: “Cities, counties and health services took the biggest hits from Gov. Tim Pawlenty’s proposed cuts on Tuesday, as the governor followed through on promises to balance the State’s budget himself. Pawlenty’s cuts, made through a process called unallotment, are intended to close a $2.7 billion gap in the State budget left after an impasse between Pawlenty, a Republican, and the DFL-controlled Legislature. . . . The unallotments include: (a) $1.8 billion in K-12 education payment deferrals and adjustments; (b) $300 million in cuts to local government aid and credits to cities and townships; (c) $236 million in cuts to human-services spending; (d) $169 million in cuts to administrative offices; (e) $100 million reduction of higher-education appropriations; (f) $67 million reduction of refunds and other payments; and (g) $33 million in cuts to most state agency operating budgets.” This article includes the entire list of allotment moves. *** Minnesota Office of Management and Budget, July 2009: “Minnesota’s net general fund revenues for FY 2009 are now estimated to total $14,843 million -- $150 million (1.0 percent) less than February’s forecast. Individual income tax receipts were the primary source of the shortfall, down $232 million (3.2 percent) from forecast.” * ** U.S. Bureau of Labor Statistics, July 17, 2009: Minnesota’s seasonally adjusted unemployment rate in June 2009 was 8.4 percent -- up from 5.3 percent in June 2008. Minnesota is among the States with statistically significant employment rate changes during that period. *** Workday Minnesota, University of Minnesota, August 16, 2009: “Gov. Pawlenty’s budget ax fell hard on the people of Minnesota Friday (August 14) with another $14 million in cuts to public services, in areas ranging from transit and education to food inspection. . . . Services cut in the latest round of unallotment include dairy and food inspection; several employment services, including State Services for the Blind; numerous programs to protect natural resources and prevent pollution; staffing to administer human services and assistance for Metro Transit. . . . State Budget Commissioner Tom Hanson said, ‘All of the allotment reductions have been implemented except for the reductions to FY 2011 local government aids, which we expect to be complete by mid-January, 2010.’” (NOTE: This is the third notice of unallotment reductions issued by the Minnesota Office of Management and Budget since the legislature acted on the budget. The precise amount of the reductions announced on August 14, is $13,628,911.) * ** Office of the Governor, August 26, 2009: “Minnesotans are the first in the nation to be able to comparison shop for health care providers using both quality and cost at a single website, Governor Tim Pawlenty announced today. The website – www.mnhealthscores.org – now includes the average price paid by health plans to each medical group for the 100 most common health services. . . . The impact of transparency is helpful for more than just consumers. Providers will be motivated to compare themselves to others and may make changes in their own clinics to stay competitive.” _________________________________ Governor Pawlenty and Legislative Leaders Announce Bipartisan Budget Agreement, Includes Property Tax Cap, Office of the Governor, May 18, 2008: http://www.governor.state.mn.us/mediacenter/pressreleases/2008/PROD008934.html
Minnesota Management and Budget Office, 2008 November Economic Forecast, November 2008:http://www.budget.state.mn.us/budget-pog
Governor Pawlenty Says Extraordinary Economic Crisis Demands Dramatic Reform of State Government, Office of the Governor, December 4, 2008: http://www.governor.state.mn.us/mediacenter/pressreleases/2008/PROD009220.html
Governor Pawlenty Takes Action to Balance Current State Budget, Office of the Governor, December 19, 2008 (an audio version is also available): http://www.governor.state.mn.us/mediacenter/pressreleases/2008/PROD009248.html
Higher Education Takes a Big Hit in Governor’s Budget, Minnesota Public Radio, Twin Cities, December 19, 2008: http://minnesota.publicradio.org/display/web/2008/12/19/ lower_enrollment_means_less_dollars_for_schools/?refid=0
The Lost Decade: Taking a Closer Look at Minnesota’s Public Investments in the 2000s, Minnesota Budget Project, Minnesota Council of Nonprofits, December 2008 -- Press release and click for the full text: http://www.mncn.org/bp/lostdecade.htm
Governor Pawlenty, Legislators Introduce Shared Services Proposal to Reduce Costs for Schools, Office of the Governor, January 7, 2009: http://www.governor.state.mn.us/mediacenter/pressreleases/PROD009280.html
Minnesota and Wisconsin Governors Sign Groundbreaking Executive Orders to Explore Shared State Services, Office of the Governor, January 13, 2009:http://www.governor.state.mn.us/mediacenter/pressreleases/PROD009296.html
Governor Pawlenty Outlines Plans to Spur Job Growth, Invest in K-12 Schools in State of the State Address, Office of the Governor, January 15, 2009:http://www.governor.state.mn.us/mediacenter/pressreleases/PROD009308.html
Minnesota Gov. Pawlenty Unveils Balanced Budget Proposal Setting Priorities for “a Better Future,” Hometown Source, ECM Publications (Minnesota & Western Wisconsin), January 27, 2009:http://hometownsource.com/index.php?option=com_content&task=
view&id=7796&Itemid=1*** To review the FY 2010-11 Governor’s Budget Recommendation -- Includes issue briefs, slides, and agency level narratives:http://www.budget.state.mn.us/budget/
Cut to the Chase -- Budget Impact on Higher Ed in Minnesota, Daily Planet, Twin Cities, January 28, 2009:http://www.tcdailyplanet.net/article/2009/01/28/
cut-chase-budget-impact-higher-ed-minnesota.html
2009 February Economic Forecast, Minnesota Management and Budget, March 3, 2009:http://www.budget.state.mn.us/forecast*** Archived economic forecasts are at:http://www.budget.state.mn.us/budget-pog
Minnesota’s website on how State dollars are spent on the American Recovery and Reinvestment Act, announced by the Minnesota Office of Management and Budget, March 2009:http://www.budget.state.mn.us/stimulus
Governor Pawlenty’s Budget Recommendations Maintain Priorities, Position State for Recovery, Office of the Governor, March 17, 2009:http://www.governor.state.mn.us/mediacenter/pressreleases/PROD009403.html*** Also see the one-page summary of the Governor’s FY 2012-2013 Plan -- General Fund, Office of the Governor, March 17, 2009:http://www.politicsinminnesota.com/files/govbudgetnumbers3%2017.pdf
State Revenue Below Forecast in February and March, Minnesota Office of Management and Budget, April 10, 2009:http://www.politicsinminnesota.com/files/April%202009%20Economic%20Update.pdf
MN Legislature Adjourns With No Budget Deal, KEYC-12 Fox News, Mankato, May 19, 2009:http://www.keyc.com/node/22252
Governor Pawlenty Will Finish Work Left Undone by Legislators, of the Governor, May 19, 2009:http://www.governor.state.mn.us/mediacenter/pressreleases/PROD009528.html*** The audio of the Governor’s May 19 press conference is available:http://www.governor.state.mn.us/mediacenter/podcasts/index.htm*** Also see the subsequent analysis called “Surprise Resolution to Legislative Session Leaves Long-Term Deficits” by the Minnesota Budget Project (July 16, 2009): http://minnesotabudgetbites.org/2009/07/16/new-analysis-2009-session-still-leaves-future-deficits/ State Set for Pawlenty’s Solo Budget Cutting, Minnesota Public Radio, June 4, 2009 -- And click to read the letter from the OMB Commissioner:http://minnesota.publicradio.org/display/web/2009/06/04/unallot_letter/Pawlenty Proposes $2.7 Unallotment, Minneapolis/St. Paul Business Journal, June 16, 2009:http://www.bizjournals.com/twincities/stories/2009/06/15/daily22.html*** The Governor’s list of proposed unallotments and administrative actions -- General Fund by Omnibus Bill and Agency is available at:http://www.governor.state.mn.us/stellent/groups/public/documents/web_content/prod009584.pdf*** To listen to the Governor’s June 16 press conference:http://cdn2.libsyn.com/pawlenty/06.16.09_Unallotment.mp3?nvb=20090618194923&nva=20090619195923&t=06f4f7e419995853d04b8FY 2009 Revenues $150 Million Below Forecast, Minnesota Office of Management and Budget, July 2009:http://www.mmb.state.mn.us/fu-updatesRegional and State Employment and Unemployment Summary, U.S. Bureau of Labor Statistics, July 17, 2009:http://www.bls.gov/news.release/laus.nr0.htmPublic Employee Union Responds to Final Round of State Budget Cuts, Workday Minnesota, University of Minnesota, August 16, 2009 (refers to the Governor’s third set of unallotments):http://www.workdayminnesota.org/index.php?news_6_4132*** All notices of unallotment reductions and other details of the Governor’s unallotment plan are available at:http://www.budget.state.mn.us/budgetGovernor Pawlenty Unveils First-in-the-Nation Tool Showing Health Care Cost and Quality Information, Office of the Governor, August 26, 2009:http://www.governor.state.mn.us/mediacenter/pressreleases/PROD009633.html*** The comparison shopping website (Minnesota HealthScores) is:http://www.mnhealthscores.org/ Mississippi: Mid-2009 Reversals, FY 2010 Reductions Compiled from several sources named in the text and in the links below. *** Office of the Governor, April 23, 2008: “Governor Haley Barbour today signed legislation providing $2.5 billion in State funding for K-12 education in Fiscal Year 2009. . . . In addition to fully funding the Mississippi Adequate Education Program (MAEP), HB 513 gave $8 million for State Superintendent Hank Bounds’ proposal to redesign high school, and $5 million for vocational equipment, both activities geared toward making high school more rigorous and relevant, especially for students not on a path to college. . . . The Governor’s early childhood initiative was also funded for $3 million during the legislative session.” Several other education initiatives were also included. *** Office of the Governor, November 12, 2008: “Governor Haley Barbour today ordered Fiscal Year 2009 spending cuts totaling $41.9 million, or two percent, for most State agencies due to a shortfall in State tax collections. With revenue falling 2.3 percent below estimates, the Governor said the cuts are mandated by Mississippi Code §27-104-13, which requires the State Fiscal Officer to balance the budget when State revenue falls below estimates for the fiscal year. He noted these budget revisions will not affect funding for such priorities as the Mississippi Adequate Education Program (MAEP), Medicaid, public health and certain social services. . . . The revisions will not impact other education-related spending, such as support for vocational-technical programs, Mississippi Schools for the Blind and the Deaf, and National Board Certification” *** Office of the Governor, November 18, 2008: “Governor Haley Barbour today detailed a conservative, prudent, realistic Executive Budget Recommendation for Fiscal Year 2010 that fully funds the Mississippi Adequate Education Program, protects Medicaid, reduces some spending, and raises new revenues through higher taxes on tobacco products. . . . In addition, the recommendation includes an infusion of $84 million from the State’s Rainy Day Fund, known as the Working Cash Stabilization Fund, to bolster revenues that are sagging due to downturns in the national and international economies. He urged legislators to avoid depleting the State’s savings account this year and keep a cushion against larger cuts in the following years. . . . The primary spending reductions in the FY10 budget recommendation generally coincide with the FY09 cuts imposed last week. For the most part departments and agencies that are reducing expenditures in the current fiscal year by two percent would be reduced an additional two percent in FY2010.” *** Office of the Governor, January 13, 2009: In his State of the State address, Governor Barbour said that “December’s tax receipts missed the revenue estimate by 9.5 percent, overall revenue by 8.3 percent. . . . There is a law -- Section 27 104 13 of the Mississippi Code that orders the Governor to make enough cuts in appropriated State spending to eliminate any deficit spending, if State revenue comes in lower than the estimate on which the appropriations were made by the Legislature. As you know, to comply with the mandate of this law, I made $42 million in spending reductions affecting many State departments and agencies back in November. I held others, like the Mississippi Adequate Education Program, harmless from these cuts. . . . The State Department of Finance and Administration now estimates that revenue for this fiscal year, which ends June 30, will fall between one hundred seventy-five and three hundred ten million dollars below the budgeted level. . . . To comply with the law I must reduce the Mississippi Adequate Education Program (MAEP), though not by five percent. Even so, the news is not as bad as it could be. . . . We are already halfway through the fiscal year, so our agencies that didn’t get cut in November will now be forced to reduce spending by ten percent for the last six months of the fiscal year to achieve a five percent cut for the entire year. . . . I submitted my Executive Budget Recommendation last November. It proposes prudent reductions in State spending; it includes the Tax Study Commission’s proposal for increases in tobacco taxes early in the Session, for this fiscal year; and, very importantly, it would use slightly less than one-fourth of the Rainy Day Fund to allow $85 million more spending for priorities like education during this period of reduced revenue.” *** Office of the Governor, January 14, 2009: “Governor Haley Barbour today ordered further spending cuts, trimming the Fiscal Year 2009 budget by $200 million due to declining state tax collections. On Wednesday (January 24), the Governor reduced state agencies’ budgets by an additional $158.3 million, bringing the total cuts for the year to $200 million. All departments and agencies were cut 5 percent except for court-ordered settlements, Medicaid services, and the Mississippi Adequate Education Program (MAEP) was trimmed 3.49 percent, or about $76.6 million. The cuts were necessary because State tax collections fell 9.5 percent below the estimate for December and total collections fell 8.3 percent below the estimate for the month. Year-to-date revenues are 3.06 percent below expectations. The Governor must trim spending as mandated by Mississippi Code §27-104-13, which requires the State Fiscal Officer to balance the budget when State revenue falls below estimates for the fiscal year.” *** Clarion-Ledger, Jackson, February 5, 2009: “A multimillion dollar shortfall in Mississippi's current budget is growing, up nearly $26 million from last month. . . . Collections for the general fund in January were $25.5 million, or 6.5 percent, below what was expected. The State budget is $90.8 million below estimates with five months left to go in the current fiscal year, according to a legislative budget report issued this week. Last month, revenues were $65 million below the projections.” *** Leader-Call, Laurel MS, March 25, 2009: “According to a report approved by the Legislative Budget Committee, State revenue estimates continue to decline, with calculations for the current year being reduced by $222.5 million and revenue estimates for the upcoming year being reduced by $402.7 million. . . . Due to questions and concerns relating to the federal stimulus package and the possibility of additional State budget cuts, the legislative session will likely be recessed on March 31. . . . Though it has been a very difficult budget year, the Senate passed House Bill 1677, legislation that would fully fund the Mississippi Adequate Education Program for the third consecutive year. It likewise would allow the government to increase from $6 million to $13 million the amount of money provided to teachers for classroom supplies.” *** Commercial Appeal, MidSouth News, Memphis, April 1, 2009: “The House and Senate adjourned around noon Wednesday without reaching deals on raising Mississippi's cigarette tax and funding its Medicaid program but vowed to return in May or June to work out a new State budget." *** Hattiesburg American, April 2, 2009: “Despite millions in federal stimulus dollars, State Superintendent of Education Hank Bounds told school districts officials Tuesday (March 31) the budget crisis in Mississippi will most likely get worse. . . . ‘I think the Legislature made the right decision to go home until we know all the rules (on the federal stimulus funds),’ he said. . . . The nearly $800 billion federal stimulus package approved in February essentially created three pots of money for the state's K-12 public schools, colleges and universities: physical stabilization, Title I and special education. The physical stabilization fund - about $470 million - is supposed to restore January cuts to the Mississippi Adequate Education Program funding for this year and ensure full funding for MAEP for 2010 and 2011. MAEP is the State's formula for funding public education and is a public school's largest source of funding.” *** Office of the Governor, April 8, 2009: “Governor Haley Barbour today signed into law Senate Bill 2628, known as the Children First Act of 2009, increasing accountability standards and strengthening academic achievement for Mississippi’s public schools. Governor Barbour also announced a $150,000 grant from the National Governors Association to develop methods for turning around chronically low-performing schools in Mississippi and three other States. . . . The Children First Act will have the greatest impact on those school districts considered ‘failing,’ which is an academic designation determined by the State Board of Education. Among the provisions in the legislation are: allowing the removal of superintendents and school board members when a school district has been considered ‘failing’ for two consecutive school years, the creation of a Mississippi Recovery School district to govern districts that have been taken over by the state and requiring school district officials to report to the State Board of Public Accountancy when an audit is thought to be deficient in any manner by a financial advisor. . . . The grant will complement the Children’s First Act of 2009. The funds will help design policies to turn around schools with lagging performance.” *** Office of the Governor, May 6, 2009: In submitting his modified Executive Budget Recommendations for FY 2010 in a letter to the Mississippi Legislature, Governor Barbour said, in part, that “it is incumbent upon State agencies, the Legislature and me, as Governor, to take the necessary actions not only to balance the upcoming FY 2010 budget .. . but also to be forward looking by addressing the problems we are certain to face in the FY 2011 budget and beyond. It is necessary to revise my November 2009 Executive Budget Recommendation for FY 2010 because revenue estimates have been significantly reduced by the Revenue Estimating Committee. . . . For the current year, according to the Revenue Estimating Committee’s March estimate, revenues will fall $314.4 million (including beginning cash and Education Enhancement Funds). While $319.2 million of stimulus funds will be used to restore a portion of the budget cuts made during FY 2009 and address revenue shortfalls, most agency and program budgets for FY 2010 will still have reductions of 4 or 5 percent below the FY 2009 appropriated level. Our top priority is education at all levels -- public schools, community colleges and universities. Therefore, most education spending will be restored to about 99 percent of appropriated levels for FY 2009. . . . A protracted recession means we will need the Rainy Day Fund for years to come. We cannot drain the State savings account in one or two years. I believe we should use one-fourth of the State’s Rainy Day Fund in each of FY 2010 and FY 2011, which amounts to about $90 million a year. . . . The federal stimulus funding keeps our required spending cuts manageable, essentially 5 to 10 percent below FY 2009 appropriated levels. Without the nearly $1.2 billion we are receiving, the cuts would be double or worse. . . . I am not writing a budget for FY 2012, but you need to know a $500 million or greater shortfall is projected for that year.” *** The Dispatch, Columbus-Starkville-Golden Triangle, May 7, 2009: “Gov. Haley Barbour plans to approve the cigarette tax increase the State Legislature passed Wednesday as lawmakers resumed efforts to build a State budget amidst what Barbour calls a ‘financial storm.’ The 50-cent-per-pack increase — the State’s first cigarette tax hike since 1985 — is estimated to generate more than $100 million. It will help replenish the state’s depleted car-tag reduction fund and provide additional revenues for the state treasury.” *** Office of the Governor, May 31, 2009: A statement from the Governor says that “as legislative conferees continue talking about the Fiscal Year 2010 budget, it’s important they and the public know the facts about education funding. For school year 2009-2010 (whose budget had already passed), our K-12 schools will receive nearly $200 million more than they have ever received in any fiscal year, a 7.8 percent increase over the previous highest year’s funding and a 10.6 percent increase over the funding public education actually received last year. This total includes a bounty of extra federal stimulus funds, deployed directly to the State Department of Education, and the amounts include the following: For the basic education programs, $152 million in the next school year; $70 million extra for Title I-X; $60 million extra for special education; and nearly $20 million for school improvement grants. The $152 million supplements our K-12 education funding formula, MAEP, and is available for a wide variety of uses, including pay for teachers and staff, other operating expenses, etc. As State revenues continue to decline, Governor Haley Barbour has made it a priority to wisely and carefully recommend spending State tax dollars in combination with federal stimulus dollars. In education, Governor Barbour’s plan maximizes these resources by funding MAEP base student cost, in accordance with stimulus guidelines, at 1.6 percent above FY 09 appropriated.” *** Jackson Free Press, June 11, 2009: “The Mississippi Legislature may have a new tool to work with in straightening out the State’s fiscal woes. Mississippi Attorney General Jim Hood announced at a June 11 press conference that technology giant Microsoft Corporation has agreed to a $100 million settlement with the State of Mississippi that will be divided among State agencies and residents. . . . Hood estimates $40 million will be paid to the State within 40 days, pending a settlement order from Hinds County Chancery Court Judge Denise Owens. Up to $60 million in hardware and software vouchers will be provided to consumers, businesses, and all county, local and municipal governments — including public schools and districts — that can prove purchase of Microsoft product. . . . The settlement brings to a close lawsuits launched by 21 States against Microsoft for anti-competitive activity in the 1990s. Many were class-action lawsuits while others, like the Mississippi suit, were limited to a State suit without co-plaintiffs.” *** Office of the Governor, June 23, 2009: In this statement, Governor Barbour says that “more than 20 years ago the Legislature wisely recognized Medicaid spending could cause a large deficit in the State budget, which would violate both State law and the State constitution. Therefore, the Legislature authorized and later mandated that the governor make such reductions in Medicaid spending as necessary to balance the Medicaid budget. At the demand of the Mississippi Hospital Association, the House of Representatives has insisted on gutting this very important law. The purpose of the law is to protect the taxpayers, but the proposal being offered to the Legislature and me by Medicaid negotiators puts the taxpayer at unconstitutional and unacceptable risk of runaway deficits in Medicaid. I appreciate the senators and Lieutenant Governor Phil Bryant who have resisted this proposal and continue to oppose it. I will fight the proposal with all my might.” (NOTE: Subsequently the Governor called a special session for June 28 to resolve the Medicaid impasse.) *** Office of the Governor, July 1, 2009: “The Fiscal Year 2010 budget adopted in a Special Session of the Mississippi Legislature reflects many of the priorities and conservative principles outlined by Governor Haley Barbour when he summoned lawmakers back to Jackson. ‘While not all issues are resolved, overall this is a prudent, balanced budget that I believe will serve the State’s taxpayers, agencies and their constituents well for the next fiscal year. I am especially pleased the Legislature accepted my proposal to carry forward $60 million from the Health Care Expendable Fund as a cushion against the revenue shortfalls that are expected next year, ‘Governor Barbour said. . . . Spending on all three levels of education will be the highest ever, but the federal stimulus funds make that possible. The Mississippi Adequate Education Program, including national board certification teacher pay, is fully funded. Medicaid, the state-managed health care program, was reauthorized and funded partially through reinstatement of a hospital assessment that will start at $60 million in FY 2010 and rise to $90 million by FY 2012. In addition, the Legislature curtailed efforts to strip from the Medicaid law strong management features designed to prevent the program from running a deficit. Governor Barbour also said he has used his constitutional partial veto authority to eliminate parts of seven Fiscal Year 2010 appropriations bills passed in the Special Session.” These vetoes are summarized in the news release. *** Sun Herald, Biloxi-Gulfport, July 2, 2009: “A top administrator said Thursday that some of Mississippi's 15 community mental health centers could have trouble surviving because Gov. Haley Barbour vetoed $7 million in State funding. The money was intended to cover shortages in the centers' budgets for the fiscal year that ended Tuesday. . . . Barbour said Wednesday that he vetoed the funding because lawmakers agreed to take only $95 million out of the State's rainy day fund -- about one-quarter of the balance in the financial reserves. Barbour said the $7 million exceeded that promise.” * ** Hattiesburg American, July 11, 2009: “Mississippi lawmakers spent less than six hours in special session Friday (July 10) to approve the final details of the State's $6 billion spending plan. The House and Senate approved budgets for the Public Service Commission and the related Public Utilities Staff. The two utility-regulation agencies had been the only parts of State government left unfunded when the fiscal year started July 1.” *** U.S. Bureau of Labor Statistics, July 17, 2009: Mississippi’s seasonally adjusted unemployment rate in June 2009 was 9.0 percent -- up from 6.9 percent in June 2008. Mississippi is among the States with statistically significant unemployment rate changes during that period. * ** Clarion Ledger, Jackson, September 1, 2009: “Mississippi revenues came up short again in August as sales taxes remain sluggish. The State collected $6.5 million, or 2 percent, less than expected last month, according to the State Tax Commission.
. . . Tax collections for the general fund are $32.4 million, or 5.9 percent, below estimates for the fiscal year that began July 1.” *** Office of the Governor, September 3, 2009: “Governor Haley Barbour today ordered cuts to State agency spending totaling $171.9 million after 12 consecutive months of revenue collections that were lower than expectations, including the first two months of Fiscal Year 2010. . . . ‘We simply don't have enough revenue to meet our budgeted expenditures for FY 2010, much less Fiscal Years 2011 or 2012. While future budget years are of grave concern, State leaders must first and foremost take responsible actions to reign in spending for the current fiscal year, FY 2010. That means cuts to all of State government, including education, which accounts for more than 60 percent of total State spending,’ Governor Barbour said. _________________________________ Governor Barbour Signs K-12 Education Appropriation, Office of the Governor, April 23, 2008: http://www.governorbarbour.com/news/2008/apr/K12BillSigning.htm
Governor Haley Barbour Announces FY 09 Budget Revisions, Office of the Governor, November 12, 2008: http://www.governorbarbour.com/news/2008/nov/ GovernorHaleyBarbourAnnouncesFY09BudgetRevisions.htm
Governor Haley Barbour Announces FY 2010 Executive Budget, Office of the Governor, November 18, 2008: http://www.governorbarbour.com/news/2008/nov/BudgetRecommendationFY2010.htm*** Full text of Governor’s speech on Executive Budget Recommendationsfor Fiscal Year 2010:http://www.governorbarbour.com/documents/FY2010%20EBR.pdf
Prepared Remarks of Governor Haley Barbour, 2009 State of the State, Office of the Governor, January 13, 2009:http://www.governorbarbour.com/news/2009/Jan/2009StateoftheState.htm
Governor Barbour Orders Further Budget Revisions, Office of the Governor, January 14, 2009: http://www.governorbarbour.com/news/2009/Jan/FY2009budgetrevisiontotal.htm
Miss. Tax Revenue Off $90M, Clarion-Ledger, Jackson, February 5, 2009:
http://www.clarionledger.com/article/20090205/NEWS/902050355/1001
Mississippi’s website on the uses of federal stimulus fund, launched in March 2009, is at:http://stimulus.ms.gov/msgo/mssr.nsf State Budget Concerns May Cause Special Session, Leader-Call, Laurel MS, March 25, 2009:http://www.leadercall.com/opinion/local_story_085005415.html?keyword=secondarystory
Mississippi Budget Talks to Go On in Recess, Commercial Appeal, MidSouth News,
Memphis, April 1, 2009:http://www.commercialappeal.com/news/2009/apr/01/
first-part-mississippi-legislative-session-over-bu/
Bounds: Budget Crisis Likely to Get Even Worse, Hattiesburg American, April 2, 2009:http://www.hattiesburgamerican.com/article/20090402/NEWS01/904020317/1002
Governor Barbour Signs Children First Act, Announces $150,000 NGA Education Grant, Office of the Governor, April 8, 2009:http://www.governorbarbour.com/news/2009/apr/childrenfirst.htm
Governor Barbour Presents Modified FY 2010 Budget to State Legislators, Office of the Governor, May 6, 2009:http://www.governorbarbour.com/news/2009/may/Modified2010budget.htm*** Also see: Governor Barbour Reviews Budget Issues -- YouTubehttp://www.youtube.com/governorbarbour*** The Governor’s FY 2010 modified budget recommendations are available at:http://www.governorbarbour.com/features/budget.html
Cig Tax Behind, Budget Looming Ahead, The Dispatch, Columbus-Starkville-Golden Triangle, May 7, 2009:http://www.cdispatch.com/news/article.asp?aid=1344
Key Facts About Education Funding in Mississippi, Office of the Governor, May 31, 2009:http://www.governorbarbour.com/news/2009/may/ed_facts.htm*** Also see additional details about education funding from the Governor on June 3:http://www.governorbarbour.com/news/2009
/jun/GovernorBarboursbudgetboostseducation.htm
Mississippi to Receive $100 Million in Microsoft Settlement, Jackson Free Press, June 11, 2009:http://www.jacksonfreepress.com/index.php/site/comments
/mississippi_to_receive_100_million_in_microsoft_settlement/Statement of Governor Haley Barbour on Medicaid and Budget Negotiations, Office of the Governor, June 23, 2009:http://www.governorbarbour.com/news/2009/jun/medicaid.htmlGovernor Barbour: FY 2010 Budget Prudent, Balanced, Office of the Governor, July 1, 2009:http://www.governorbarbour.com/news/2009/jul/7.1.09.BarbouronFY2010prudentbudget.htmlMental Health Centers: Budget Veto Hurts Services, Sun Herald, Biloxi-Gulfport, July 2, 2009:http://www.sunherald.com/218/story/1452637.htmlPSC (Public Service Commission) Funded; $6B State Budget Done, Hattiesburg American, July 11, 2009:http://www.hattiesburgamerican.com/article/20090711/NEWS01/907110303/1002Regional and State Employment and Unemployment Summary, U.S. Bureau of Labor Statistics, July 17, 2009:http://www.bls.gov/news.release/laus.nr0.htmMiss. Sales Tax Revenues Continue to Lag, Clarion Ledger, Jackson, September 1, 2009:http://www.clarionledger.com/article/20090901/NEWS/90901006/-1/frontpage
/Miss.-sales-tax-revenues-continue-to-lagGovernor Barber Announces Spending Cuts, Office of the Governor, September 3, 2009:http://www.governorbarbour.com/news/2009/sep/3.9budgetcutsfy2010.html Missouri: Downturns and “A New Day for Missouri”Compiled from several sources named in the text and in the links below. *** State Senator Robert Mayer, May 9, 2008: State Senator Mayer wrote that “ Missouri’s $22.4 billion (FY 2009) budget has arrived at the governor’s desk . . . . (It) includes increased funding for K-12 schools, public colleges and universities, transportation, agriculture, health care, and life sciences, among other areas. . . .We were able to provide a 2.4 percent increase in funding for the Department of Elementary and Secondary Education, including more for A+ Schools -- for a total of $5.3 billion. . . . In addition, higher education will receive a 7.8 percent increase for a total appropriation of $1.2 billion. This includes a $48.7 million increase for Access Missouri scholarships, a $6.2 million increase for community colleges, and a $33.6 million budget increase for four-year institutions. . . .Other highlights include a $21 million increase for life sciences research and funding for health care services, such as an additional $7.4 million for autism services and $13 million to provide better access to health care for low-income women.” NOTE: Matt Blunt was Governor of Missouri at the time the FY 2009 budget was created. He was succeeded by Governor Jay Nixon in January 2009. *** Governor-Elect of Missouri, December 3, 2008: “One day after former Sen. Wayne Goode concluded that Missouri faces historic economic challenges and an estimated budget shortfall of $342 million for the current fiscal year (FY09), Gov-elect Jay Nixon today outlined his initial plans to make government smaller, more efficient, and more responsive to the needs of Missouri families. Gov-elect Nixon announced today that upon taking office, he will direct each department and agency to submit proposals to reduce its expenditures. Gov.-elect Nixon will also freeze all of the State’s long-term contracts, require status reports on all capital projects, conduct performance reviews of each agency, and instruct the Department of Economic Development to submit reports on all State tax credits to determine whether or not they have led to new jobs.” *** Office of the Governor, January 27, 2009: In his State of the State Address, Governor Nixon said, “Fifteen days ago, we stood together on the steps of the Capitol to mark a ‘New Day for Missouri.’ . . .A new day for the 219,000 Missourians out of work, the highest unemployment rate in 25 years. And for the 729,000 who have no health coverage. And the 42,000 families who have had their homes foreclosed last year. . . . Because immediate action was needed, one of my first acts as Governor was to sign three executive orders to help spur job creation. . . . To tackle the budget challenges we face in FY10, we are embarking on an unprecedented initiative to make government leaner and more efficient. . . . My budget eliminates or cuts 50 programs. Many bureaucratic positions will be consolidated or eliminated altogether. . . . In total, my FY10 budget proposes the elimination of more than 1,300 position. . . Under the budget I submit to you, Missouri classrooms will receive more than 3 billion dollars in State aid. In addition, I propose a larger investment in early childhood education. We must continue to support funding for career education, the Parents as Teachers program and the Small Schools program. And I have called for increased funding for First Steps, a critical program that helps so many Missouri children get off on the right foot. . . . I’ve called for an increase in funding for the Safe Schools program, which promotes alternative schools for disruptive students. . . . Under my proposed budget, Missouri's state colleges and universities will receive the same level of support next year that they currently receive. And in exchange for the state's continued level of support, the presidents of the state's public colleges and universities have agreed not to increase tuition on Missouri students. . . . .(And) we're going to tear down the roadblocks that are preventing eligible families from registering their children for S-CHIP.” *** Office of the Governor, January 27, 2009: In his letter transmitting his proposed FY 2010 budget, Governor Jay Nixon said that it includes “more than $1 billion in overall core reductions (including more than $250 million in reductions of general revenue spending). . . . The fiscal year 2010 budget will (a) invest in Missouri’s workforce and create jobs with the Show Me JOBS initiative; (b) prioritize support for K-12 education, including full funding of the Foundation Formula; (c) guarantee no tuition increases at Missouri’s public colleges and universities; (d) expand access to higher education through implementation of the Missouri Promise Program, providing qualified students a pathway to a four-year degree, tuition free; (e) maintain vital health care services while expanding access to those services to an additional 62,000 Missourians, including more than 27,000 uninsured children; and (f) make State government more efficient and effective.” *** Columbia Daily Tribune, Columbia, April 20, 2009: Missouri Budget Director Linda Luebbering told the House Budget Committee that “State revenue estimates for the fiscal year that ends June 30 had been revised downward to a negative 4 percent growth rate. Luebbering said that, given the status of the economy now, the State would be lucky to achieve that. And for the fiscal year that begins July 1, the prediction that the State’s revenues would grow by 1 percent now appears less likely, Luebbering added. . . . Each percentage point in State revenues equals approximately $80 million in the State’s operating budget.” *** Kansas City Star, May 7, 2009: “The Missouri General Assembly gave final approval on Thursday (May 7) to a $23.1 billion budget for the State’s upcoming fiscal year. . . . Lawmakers rejected (Governor) Nixon’s call to expand health-care coverage for children and low-income parents, stymieing progress on one of the governor’s top campaign promises. . . . But the governor did score a victory on higher education funding. In January, Nixon made a deal with university officials across the State to hold funding constant in exchange for a one-year tuition freeze. The budget passed Thursday increases university funding by a little over 3 percent, ensuring tuition will hold steady for the next year. . . . Lawmakers ultimately peppered into the regular budget $785.5 million in federal ‘budget stabilization’ funds, which were intended to assist States in filling holes left by declining tax revenues.” *** Office of the Governor, June 17, 2009: “ Missourians who have exhausted their unemployment insurance while they continue to look for work have begun receiving their first payments of extended benefits under House Bill 1075, a bill signed into law last Friday (June 12) by Gov. Jay Nixon. The bill will inject up to $65 million of federal Recovery Act funds in Missouri's economy by extending the period for Missourians to receive unemployment benefits.” *** News-Leader, Springfield, June 25, 2009: “Gov. Jay Nixon's office has released a list of line-item budget vetoes and withholdings he has made the 2010 fiscal year budget. The Governor is taking action to reduce spending to ensure the budget remains balanced.
Vetoes:
(a) $105 million total funds; (b) $22.8 million is in HBs 1-13 (the operating budget); and (c)
$82.2 million in HB 22 (Capital Improvements & Other).” This article also lists additional expenditure restrictions -- those placed on hold ($325 million total funds). NOTE: It is reported that the Governor signed House Bill 1 (appropriations for elementary and secondary public schools) on June 25. *** Office of the Governor, June 26, 2009: “Gov. Jay Nixon today said he is committed to the State of Missouri participating in the development and adoption of a common core of state standards in English language arts and mathematics for elementary and secondary students. . . . The Common Core Standards Initiative is being jointly led by the NGA Center for Best Practices and the Council of Chief State School Officers.” (NOTE: On August 7, the State Board of Education approved Missouri’s membership in the Common Core of Standards Initiative.) * ** Office of Administration, July 2, 2009: “State Budget Director Linda Luebbering announced today that fiscal year 2009 ended with net general revenue collections declining 6.9 percent compared to 2008, from $8.00 billion last year to $7.45 billion this year. Net general revenue collections for June 2009 decreased by 23.9 percent compared to those for June 2008, from $826.6 million to $629.3 million. . . . “The decline in revenues is the worst in over a generation,” stated Luebbering. . . . Luebbering continues to estimate that the FY 2010 consensus revenue estimate will not be attained. ‘Governor Nixon has acted accordingly, making difficult decisions to reduce the FY 2010 budget,’ said Luebbering.” * ** Kansas City Star, July 17, 2009: “ Missouri borrowed $125 million from its reserves on Friday to keep a healthy cash flow in one of the leaner months of a lean year for revenues. The transfer ensures that the State will maintain a general revenue balance around $100 million, said Linda Luebbering, the State budget director. . . . The borrowed funds are drawn from a cash reserve of approximately $520 million, which the State carries over from year to year. The money must be paid back with interest by May 15, 2010.” * ** U.S. Bureau of Labor Statistics, July 17, 2009: Missouri’s seasonally adjusted unemployment rate in June 2009 was 9.3 percent -- up from 5.8 percent in June 2008. Missouri is among the States with statistically significant unemployment rate changes during that period. * ** Office of the Governor, August 6, 2009: “In a policy address delivered around the State, Gov. Jay Nixon today outlined the specific principles he believes are critical for legislation mandating insurance coverage of autism therapies. Autism coverage legislation is the topic of a special interim legislative committee that is meeting this summer and is likely to be taken up by the general assembly during the 2010 legislative session.” Details on four principles of autism coverage are included in this announcement. ** * Kansas City Star, August 20, 2009: “Gov. Jay Nixon on Thursday (August 20) identified $60 million in spending restrictions across Missouri government, signaling his administration’s latest effort to cut expenses in the recession. . . . Officials said they targeted the cuts at administrative positions and expenses, but will try to lessen reductions in actual services with other funding sources. . . . In addition to the reduction in department expenses, Nixon cut or withheld nearly $200 million from infrastructure projects and $20 million more in various projects and programs. . . . Almost untouched by the cuts is elementary, secondary and higher education, reflecting one of Nixon’s priorities.” * ** Office of Administration, September 3, 2009: “State Budget Director Linda Luebbering announced today that 2010 fiscal year-to-date net general revenue collections declined 5.6 percent compared to fiscal year 2009, from $1.12 billion last year to $1.06 billion this year. Net general revenue collections for August 2009 decreased by 4.1 percent compared to those for August 2008, from $614.5 million to $589.5 million. _________________________________ The 2009 Missouri Budget, The Mayer Memo, State Senator Robert Mayer, May 9, 2008:http://www.senate.mo.gov/08info/members/newsrel/d25/050908.pdf
Governor-Elect of Missouri, News Release, December 3, 2008:http://governor.mo.gov/newsroom
/2008/Nixon_Announces_Initial_Steps_to_Address_Budget_Shortfall
State of the State Address, Office of the Governor, January 27, 2009:http://governor.mo.gov/newsroom/speeches
/2009/2009_Missouri_State_of_the_State_Address.htm
Governor’s Letter of Budget Transmittal, January 27, 2009:http://oa.mo.gov/bp/budg2010/*** Proposed budget details, including department budgets, are at:
http://oa.mo.gov/bp/budg2010/*** Also see a press release that summarizes FY 2010 budget information:http://oa.mo.gov/bp/budpress10/2010PressHandout.pdf*** Also see Fiscal Year 2010 Missouri Budget and Legislative Priorities (“A New Day for Missouri”) as proposed by the Governor, January 27, 2009:http://oa.mo.gov/bp/bib2010/
The Governor’s website on Missouri’s investments in the American Recovery and Reinvestment Act, launched on March 26, 2009, is at:
http://transform.mo.gov/message/
Budget Chief Offers Dire Economic Take, Columbia Daily Tribune, April 20, 2009:
http://www.columbiatribune.com/news/2009/apr/20/budget-chief-offers-
dire-economic-take/
The Missouri State Budget Is Done, Kansas City Star, May 7, 2009:
http://primebuzz.kcstar.com/?q=node/18406
*** Also see an article from KRCG-TV, Connect MidMIssouri.com, Jefferson City, May 8, 2009:
http://www.connectmidmissouri.com/news/news_story.aspx?id=297346
Missourians Receive First Extended Unemployment Benefits Made Possible Under Bill Signed Friday by Gov. Nixon, Office of the Governor, June 17, 2009http://governor.mo.gov/newsroom/2009/First_extended_unemployment_benefits_receivedNixon Details Budget Vetoes, Withholdings, News-Leader, Springfield, June 25, 2009:http://www.news-leader.com/article/20090625/BLOGS09/90625031
/Nixon+details+budget+vetoes++withholdingsGov. Nixon Commits to Missouri Joining Other States in Developing Common Core Standards for Grades K-12, Office of the Governor, June 26, 2009:http://governor.mo.gov/newsroom/2009/K_12_Common_Core_Standards*** See information on the Common Core State Standards Initiative from the Council of Chief State School Officers:http://www.ccsso.org/whats_new/press_releases/13359.cfmState Releases Fiscal Year 2009 General Revenue Report, Office of Administration, July 2, 2009:http://oa.mo.gov/co/releases/070209GRReport.htm*** Also see the State Budget Director’s July 16 release on how FY 2009 costs have been reduced:http://oa.mo.gov/co/releases/071609OperatingCosts.htmMissouri Pulls $125M From Reserves to Keep Cash Flow a-Flowin’, Kansas City Star, July 17, 2009:http://primebuzz.kcstar.com/?q=node/19260Regional and State Employment and Unemployment Summary, U.S. Bureau of Labor Statistics, July 17, 2009:http://www.bls.gov/news.release/laus.nr0.htmGov. Nixon Joins With Families, Experts to Outline Guiding Principles for Autism Coverage Legislation, Office of the Governor, August 6, 2009:http://governor.mo.gov/newsroom/2009/Autism_CoverageNixon Restricts $60 Million in State Funds, Kansas City Star, August 20, 2009:http://www.kansascity.com/news/politics/story/1395866.htmlState Releases August 2009 General Revenue Report, Office of Administration, September 3, 2009:http://oa.mo.gov/co/releases/2009/August_General_Revenue_Report
Nebraska: An Orderly Budget Process Amid Continuing DownturnsCompiled from several sources named in the text and in the links below. *** Office of the Governor, February 22, 2008: “Gov. Dave Heineman today commented on the Nebraska Economic Forecasting Advisory Board’s revision of the State’s revenue forecast for Fiscal Years 2007-08 and 2008-09. The board lowered projections for FY 07-08 tax receipts by $51 million and $75 million for FY 08-09; a total of $126 million.. . . . Departments are encouraged to review personnel vacancies and not fill positions that may be left vacant. Directors are to restrict State employee travel and consider options to use telecommunications options as a low-cost substitute for meetings. State agencies are also to assess the need for software and equipment purchases and make only purchases that guarantee cost savings or are necessary for delivery of services; review operating costs and adopt alternatives capable of delivering equivalent service to residents; and review timing of grant or aid payments to ensure maximum efficiency.” *** Omaha World-Herald, via TMC News, December 28, 2008: “Entering the session that starts January 7, the State faces a $377 million gap between expected tax revenue and projected expenses. That shortage is for the two-year budget that begins July 1. The budget hole could grow if national economic woes start taking a larger toll on the State's economy, leading to lower State tax receipts. Lawmakers said they have no appetite for raising taxes to help close the gap. . . . Instead, the largest number said they would combine belt-tightening measures with tapping the record-high cash reserve fund to balance the books.” *** Nebraska Department of Revenue, January 12, 2009: “Tax Commissioner Douglas Ewald reported Monday that gross General Fund receipts for December were $351.3 million, which is below the forecast for the month by $20.3 million (5.5% below the forecasted amount of $371.6 million).” *** Office of the Governor, January 15, 2009: In submitting his proposed budget for the FY 2009-2011 biennium, Governor Heinemann stated that “my budget recommendations anticipate a downward revision of the October 2008 tax receipt forecasts for the 2009-2011 biennium by $99.0 million. . . . During difficult economic times, I continue to place a high priority on the financing of K-12 State aid to public schools. My budget recommendations for TEEOSA K-12 school aid include an additional $35 million, a 4.3% increase for FY 2009-10, and an additional $65 million, a 7.9% increase for FY 2010 above the current FY 2008-09 funding. In addition, I am recommending an additional $5.5 million, a 3.0% increase for FY 2009-10, and an additional $11.3 million, a 6.1% increase for FY 2010-11 above the current FY 2008-09 funding level for State aid to special education. . . .My recommendation is to transfer $80.0 million from the Cash Reserve Fund to the General Fund during the 2009-2011 budget biennium. This modest transfer allows TEEOSA school aid financing to be a priority during difficult economic times and allows for the State General Fund budget to be sustained at a growth rate of 1.8 percent.” *** Office of the Governor, February 27, 2009: “Gov. Dave Heineman today issued a statement following the Nebraska Economic Forecasting Advisory Board’s report revising last year’s prediction that State revenue will continue to grow. The board estimates that State revenue will be $81 million less in the current year, down $150 million in FY 2009-10 compared with previous estimates, and $131 million lower than previous estimates for FY 2010-11.” *** Office of the Governor, March 25, 2009: “Gov. Dave Heineman today outlined a proposal to distribute federal American Recovery and Reinvestment Act (ARRA) funding to Nebraska’s K-12 schools. . . . The Governor proposes allocating the $375 million in ARRA funds Nebraska is expected to receive toward funding for K-12 schools over the next two years. An anticipated $234 million in fiscal stabilization funding would be applied to the State aid to education formula. Nebraska is also receiving an estimated $80 million in stimulus funds for special education programs and an estimated $61 million for Title I schools.” (NOTE: Nebraska’s total ARRA funds are estimated at $1.6 billion.) *** Nebraska Department of Revenue, May 7, 2009: “Tax Commissioner Doug Ewald reported Thursday that gross General Fund receipts for April were $456 million, which is 6.1% below the April recertified forecast of $485 million. . . . Net General Fund receipts for the first ten months of fiscal year 2008-2009 were $2,743 million, which is 1.3% below the recertified forecast of $2,780 million.” *** Journal Star, Lincoln, May 13, 2009: “Senators gave final approval Wednesday to a two-year budget that will likely mean fewer State employees, less well-maintained State recreation areas and fewer troopers.
The budget is now in the governor’s court. . . . The lean, $6.9 billion two-year budget, with its 1 percent per year average increase in spending of State tax dollars, means no tax rate increases, but it will require some agencies to trim staff and services. . . . Senators recommend using about $254.5 million from the State’s $560 million cash reserve fund and about $523.9 million in federal stimulus funding. The stimulus money is paying for almost all the State aid to public schools.” (NOTE: On May 19, the Governor signed the main line budget bill, LB 315e without any vetoes,) *** Office of the Governor, May 22, 2009: “Gov. Dave Heineman today signed LB 603 into law. The bill provides additional services, support and professional resources to help Nebraska families dealing with children’s behavioral health issues. . . .The bill includes: (a) a statewide hotline for families facing a behavioral health crisis available 24/7 and staffed by professionals trained in mental health assessment; (b) a family navigator program to provide follow-up assistance and one-on-one support to families contacting the crisis hotline. Family navigators will have the experience and training to help a family access mental health services, and offer assistance to parents and guardians who may not be familiar with providers in Nebraska’s behavioral health network; and (c) new services for families that adopt or serve as guardians of a child with behavioral health challenges. Case management and post-adoption services will be available on a voluntary basis. Roughly half the of the children and teens involved in 2008 safe haven cases in Nebraska had been adopted or placed in a guardianship with a relative. Studies show continuing services is effective in helping families through the transition and ensure a child’s placement is a permanent.” *** Omaha World-Herald, July 10, 2009: “A report released Friday by the State Department of Revenue showed the State collected $3.357 billion in the fiscal year that ended June 30. That's $149 million less than the previous fiscal year, when collections hit the $3.506 billion mark. . . . According to the revenue report, net tax revenues for the year were 1.1 percent — or $36.5 million — lower than the figure lawmakers used when setting the State budget this spring. . . . Under State law, the Legislature must include a 3 percent cushion in each budget to provide for years such as the one just ended. The cushion is in addition to the separate cash reserve fund. Although it means the State started the new fiscal year with less than anticipated, the gap is small.” *** U.S. Bureau of Labor Statistics, July 17, 2009: Nebraska’s seasonally adjusted unemployment rate for June 2009 was 5.0 percent -- up from 3.3 percent in June 2008. Nebraska is among the States with statistically significant unemployment rate changes during that period. * ** Office of the Governor, August 24, 2009: “Gov. Dave Heineman was joined today by several education leaders in unveiling a series of goals designed to strengthen the education Nebraska students receive. . . . Nebraska P-16 goals are as follows: (a) adopt a college and career preparation core curriculum that requires four years of English and three years each of math, science and social studies in Nebraska school districts by the 2014-15 school year; (b) eliminate the academic achievement gap between Nebraska’s K-12 Caucasian students and its African American, Hispanic, and Native American students; (c) develop an effective longitudinal data system which provides information on the Nebraska educational system from preschool through post-graduate degree attainment and entry into the workforce to help align resources with strategic goals; (d) improve Nebraska’s high school graduation rate to 90 percent; (e) improve Nebraska’s college-going rank to the Top 10 tier nationally; (f) provide affordable access for Nebraska students to attend Nebraska’s postsecondary institutions; (g) improve time to degree completion and increase graduation rates of Nebraska’s postsecondary institutions; (h) increase by five percent the number of teacher education graduates in the areas of science, technology, engineering and mathematics (STEM) within Nebraska postsecondary institutions.” _________________________________ Gov. Heineman Urges Agencies to Restrain Spending Following Economic Policy Board’s Projections, Office of the Governor, February 22, 2008:http://www.governor.nebraska.gov/news/2008/2008_02/22_eoco_forecasting.html
Nebraska Legislators Don’t Expect Tax Increase, Omaha World-Herald, via TMC News, December 28, 2008:http://www.tmcnet.com/usubmit/2008/12/28/3879469.htm
General Fund Receipts---December 2008, Nebraska Department of Revenue, January 12, 2009:http://www.revenue.state.ne.us/news_rel/jan_09/monthly_receipts_011209.htm
Executive Budget in Brief, 2009-2011 Biennium, Office of the Governor, January 15, 2009 -- Scroll down for this, full text of recommendations, and summary tables:http://www.budget.state.ne.us/
Gov. Heineman Comments on Forecasting Board Report, Office of the Governor, February 27, 2009:http://www.governor.nebraska.gov/news/2009/2009_02/2_27_09_forecast_state.html
Gov. Heineman Outlines Plan for Use of Education Stimulus Dollars, Office of the Governor, March 25, 2009:http://www.governor.nebraska.gov/news/2009/2009_03/3_25_Plan_stimulus.html*** The Nebraska website on the use of federal stimulus funds is at:http://www.recovery.nebraska.gov/*** Also see the Nebraska Department of Education’s AARA website:http://www.nde.state.ne.us/ARRA/index.html
General Fund Receipts---April 2009, Nebraska Department of Revenue, May 7, 2009:http://www.revenue.state.ne.us/news_rel/may_09/monthly_receipts_050709.htm
Senators Send 2-Year State Budget to Heineman, Journal Star, Lincoln, May 13, 2009:http://journalstar.com/news/politics/doc4a0ae444c7378165107597.txtGov. Heineman Signs LB 603 Into Law; Bill Provides Additional Support for Children and Families with Behavioral Health Needs, Office of the Governor, May 22, 2009:http://www.governor.nebraska.gov/news/2009/2009_05/5_22_lb603.htmlBudget Gap No Cause for Alarm, Omaha World-Herald, July 10, 2009:http://www.omaha.com/article/20090710/NEWS01/707119920/0/FRONTPAGE*** The July 2009 report on general fund receipts and earlier reports are available at:http://www.revenue.state.ne.us/research/gen_fund/gen_fund_08-09.htmlRegional and State Employment and Unemployment Summary, U.S. Bureau of Labor Statistics, July 17, 2009:http://www.bls.gov/news.release/laus.nr0.htmNebraska P-16 Leaders Outline New Educational Goals, Office of the Governor, August 24, 2009:http://www.governor.nebraska.gov/news/2009/2009_08/8_24_09_P_16_education.html Nevada: Reductions Increase and Vetoes Are Overridden Compiled from several sources named in the text and in the links below *** Nevada Department of Administration Memo to All Agencies, June 17, 2008: “As a result of the most recent revenue reports, agencies will need to determine proposed prioritized budget reserves in the amounts of 2%, 3%, and 4% for FY 2009. . . . A separate spreadsheet is attached listing the total targets that each department’s budget reserve recommendations must meet. . . . At this time, no decision has been made as to whether these budget reserve recommendations will be implemented; however this information will be considered in the decision making process for closing the current deficit.” *** Nevada Department of Administration Memo to All Agencies, November 12, 2008: As a result of the most recent revenue reports, agencies will need to determine proposed budget reserves in the amount of an additional 4%, 7% and 11% for FY 2009 and submit them to the Budget Office by the close of business on Wednesday, November 19, 2008. . . . Attached to this memo is a Position Elimination Summary form to be completed for eliminated positions.” *** Nevada Department of Administration Memo to All Agencies, November 14, 2008: “Due to the continuing decline in State General Fund Revenues, all agencies are being asked to prepare additional proposed budget reductions for the 2009-2011 biennium. These will be in two decision units: E690 – an additional 10% reduction and E691 – another additional 10%, for total of 20% additional reductions. These reduction proposals are for budget planning purposes.” *** Nevada Appeal, December 9, 2008: “In a one-day special session, the Legislature on Monday approved four pieces of legislation needed to cover the State’s $340 million budget shortfall for the remainder of this fiscal year. . . . When the 2009 session opens, lawmakers will have a full 120 days to fix Nevada’s tax system and the State budget so that it can provide necessary services.” *** Office of the Governor, January 15, 2009: In his State of the State address, Governor Gibbons submitted his 2010-2011 proposed budget. Among other things, the Governor said that the budget (a) preserves Health and Human Services benefits for those who need State services; (b) maintains Nevada Check-Up so low-income children can receive health care; (c) protects eligibility limits for the long-term care program; (d) sustains the Medicaid pharmacy program; (e) protects juvenile justice and child welfare programs including Nevada’s Early Intervention Services for children with developmental delays and disabilities; (f) maintains the Child Care Assistance Program for low-income workers; (g) protects all-day kindergarten programs that are in place in at-risk schools. Also, “in order to be able to maintain funding for K-12 education and health and human services at viable levels, and to maintain public safety, (the budget) makes spending reductions in other areas” (including Nevada State Higher Education). In addition to the earlier hiring freeze, this proposed budget “includes a temporary 6 percent pay reduction for State employees instead of wide-scale layoffs. . . . I will restore salary levels as soon as we can.” *** Las Vegas Review-Journal, January 16, 2009: “ Higher education faced the biggest cuts Thursday in Gov. Jim Gibbons' budget proposal, which sought to bridge a huge revenue gap in the coming two years. Of the $633 million Gibbons proposed cutting from the level budgeted in the previous two-year cycle, $473 million (75 percent), was to come from the university system. . . . The governor's budget also included a 6 percent cut in State worker salaries, including those of teachers, and an increase of 3 percentage points in the hotel room tax in Clark and Washoe counties. . . . To cover an estimated $2.3 billion gap between the amount of money needed to run State government at its current level and the amount of revenue coming in, Gibbons also proposes cutting state worker health insurance benefits, taking $79 million in tax money from Clark and Washoe county governments. and closing rural health clinics. . . . The governor and legislators cut general fund spending by $1.5 billion during 2008. . . . Nevada faces one of the severest revenue shortfalls among the 50 States.” *** Reno News & Review, May 6, 2009: “The Nevada Economic Forum, a panel that predicts how much money State government can expect over the next two years, reported Monday (May 4) that the bottom has fallen out. The Forum’s numbers, which are binding on the lawmakers, predicted revenue more than $400 million lower than the governor’s budget recommendations spend. . . . At the same time, numbers coming in from the local governments show falling sales and property tax revenues, a shock to school districts. . . . For Gov. Jim Gibbons, the news could scarcely have been worse — the drop in revenue was so severe that even to fully fund the budget recommendations he made in January . . . the lawmakers must raise taxes. How much of a raise it would take to reach that point was estimated from $600 million to $1 billion.” *** Nevada Appeal, May 22, 2009: “The Nevada Senate on Thursday gave final legislative approval to the first of the major bills which will create the budget and pay for it. AB563 appropriates a total of $2.79 billion to the budgets which fund K-12 public schools during the next biennium. It goes to the governor for his signature. . . . Final passage of the education bill clears lawmakers of the hurdle imposed by the “Education First” amendment to the Nevada Constitution which mandates that an education funding plan be approved before other parts of the state budget.” *** Las Vegas Business Press, May 27, 2009: “The Nevada Legislature approved a new budget for the next biennium that includes $1 billion in new taxes, including doubling the business license fee to $200 per year and increasing the business payroll tax rate from 0.63 percent to 1.17 percent. . . . The budget bill also included a sunset provision keeping the tax increases in place for only the next two years. Other parts of the budget include increasing the sales tax rate by 0.35 percentage points, raising vehicle registration fees and diverting funds from Clark and Washoe counties. (NOTE: The total budget is $6.8 billion.) *** Office of the Governor, May 28, 2009: In commenting on the Legislature’s budget, Governor Gibbons said, “It is a sad day, but a historic day for the citizens of Nevada. I appreciate the hard work of a handful of conservative legislators did, with some success, trying to control the out-of-control spending and crushing tax hikes of the liberal leadership of the Legislature. . . . I will stand up for the working families of Nevada by vetoing these new taxes.” *** Las Vegas Review-Journal, June 1, 2009: “The State Senate finished passing the budget through the Legislature over the objections of Gov. Jim Gibbons. . . . By the required two-thirds margin, State senators overrode Gibbons' vetoes of education funding, general appropriations, a change to the sales tax collection allowance and taking property tax revenue from Clark and Washoe counties. . . . Sunday's overrides completed the package of bills to fund State government for the next two years. Lawmakers approved about $1 billion in tax increases to enable about $6.8 billion in spending for the biennium.” The over-ridden bills are summarized in this article. *** Nevada Appeal, Carson City, June 27, 2009: “ Taxable sales in Nevada fell more than $700 million in April to $3.2 billion — a 17.9 percent drop from April 2008. With no major special events, gaming tax revenue was down 14 percent. Fewer tourists spending less also impacted the sales tax. . . . The Department of Taxation reported gross collections of $240.6 million for April, a 16.6 percent decrease compared to April 2008. . . . Department of Administration Economist Janet Rogers said the sales and use tax is still on target to meet the May 1 Economic Forum projections used to finalize the State budget.” *** U.S. Bureau of Labor Statistics, July 17, 2009: Nevada’s seasonally adjusted unemployment rate for June 2009 was 12.0 percent -- up from 6.4 percent in June 2008. Nevada is among the States with statistically significant unemployment rate changes during that period. _________________________________ Recommendations for 4% Budget Reserve Proposals, Nevada Department of Administration, June 17, 2008 -- Click on 2008-25: http://budget.state.nv.us/memos/
Recommendations for Additional 4%, 7%, and 11% Targets, Nevada Department of Administration, November 12, 2008 -- Click on 2008-49: http://budget.state.nv.us/memos/
Proposed Additional Budget Reductions 2009-2011 Biennium, Nevada Department of Administration, November 14, 2008 -- Click on 2008-50: http://budget.state.nv.us/memos/
Legislature Approves Cost-Cutting Measures, Nevada Appeal, December 9, 2008: http://www.nevadaappeal.com/article/20081209/NEWS/812096263/
1070&ParentProfile=1058&title=Legislature%20approves%20cost-
cutting%20measures
State of the State Address, Office of the Governor, January 15, 2009: http://gov.state.nv.us/2009SOS/2009StateoftheState.pdf ***Details on the proposed 2010-2011 budget are available at:http://www.nevadaspending.com/OpenGov/ViewBudgetSummary.aep
State of the State: Education Takes a Hit in Gibbons Budget Proposal, Las Vegas Review-Journal, January 16, 2009: http://www.lvrj.com/news/37701409.html
Nevada Recovery is the website on information related to the American Recovery and Investment Act of 2009, launched in March 2009:http://www.nv.gov/Recovery/
Nevada Budget Numbers Get Worse, Reno News & Review, May 6, 2009:
http://www.newsreview.com/reno/content?oid=976212*** To access the Nevada Economic Forum’s Forecast Report of May 1, 2009, scroll down at this link (earlier reports are also available here):
http://www.leg.state.nv.us/lcb/fiscal/Economic%20Forum/
Nevada Legislature Winds Down Budget Process, Nevada Appeal, May 22, 2009 (refers to K-12 budget bill) :http://www.nevadaappeal.com/article/20090522/NEWS/905229954
/1070&ParentProfile=1058
Nevada Legislature Approved a New Budget for the Next Biennium, Las Vegas Business Press, May 27, 2009:http://www.lvbusinesspress.com/articles/2009/05/27/poll
/doc4a1dbd3eb49f3142619502.txt
Governor’s Comments on Veto of Largest Tax Increase in Nevada History, Office of the Governor, May 28, 2009http://gov.state.nv.us/PressReleases/2009/PDF/PR-2009-05-28_TaxVetoComments.pdf
Nevada Legislature: Gibbons Gets Overruled, Las Vegas Review-Journal,
June 1, 2009:http://www.lvrj.com/news/46614607.htmlTaxable Sales Down Nearly 18 Percent for April, Nevada Appeal, Carson City, June 27, 2009:http://www.nevadaappeal.com/article/20090627/NEWS/906269896/1058Regional and State Employment and Unemployment Summary, U.S. Bureau of Labor Statistics, July 17, 2009:http://www.bls.gov/news.release/laus.nr0.htm
New Jersey: Falling Revenues and an Emergency RuleCompiled from various sources named in the text and in the links below. *** Office of the Governor, June 30, 2008: Governor Jon S. Corzine today signed a “$32.9 billion State budget for FY 2009 that prioritizes the core functions of government –- education, public safety and protecting the most vulnerable among us –- while also providing substantial property tax relief to homeowners. . . . The budget represents a $2.9 billion reduction in spending; reduces the size of government by 3,000 workers through early retirement and attrition; cuts the operating budgets of every State department by an average of 5 percent; and eliminates altogether the Department of Personnel and the Commerce Commission. This budget pays down the State debt by $650 million and uses $261 million in unexpected surplus revenues to replenish the Unemployment Insurance fund, thereby avoiding a $350 million increase in business taxes. At the same time, the budget provides nearly $600 million more for public education through a new, fairer funding formula that is based on students, not zip code.” *** The Star-Ledger, Newark, November 7, 2008: “Starting today, New Jersey is launching a web site (www.buynjbonds.gov) and a series of newspaper and radio ads designed to encourage State residents to invest in New Jersey debt. First up is a $750 million bond issue for transportation improvements the State is scheduled to sell next week.” *** NorthJersey.com, Hackensack, January 2, 2009: “The governor laid out the latest news on the State's fiscal outlook in the context of the faltering economy today. He said the total fallout for New Jersey from the ongoing recession is now pegged at $2.1 billion, up from the last estimate of $1.2 billion. All State revenue sources except for the lottery are down at least 5 percent, he said. . . . To dig out of the hole, the State will cut $812 million in spending this fiscal year, with employee salary raises and pension contributions among the items in the crosshairs. Some aid programs for schools and municipalities will also be curtailed as part of the broader spending cut. . . . The governor has also proposed using $500 million that was supposed to go toward reducing the State's debt to patch the budget hole. . . . Corzine is also counting on collecting $300 million from a federal stimulus plan.” *** New Jersey Department of the Treasury, January 16, 2009: “State Treasurer David Rousseau announced today that, for the third straight month, revenues fell significantly below budget projections, with December’s collections coming in about $354 million under target. There were also revenue shortfalls of about $200 million in November and $211 million in October. . . . Treasurer Rousseau recently estimated that New Jersey’s revenue shortfall for FY 2009 would reach approximately $1.7 billion in addition to another $300 million in updated spending requirements. The estimated shortfall spurred $812 million in spending reductions announced earlier this month by Gov. Jon S. Corzine. . . . They included a freeze on pay raises for all State employees for the next 18 months; the shift of $500 million from the Long Term Debt Reduction Fund; and the use of $275 million of the State’s Rainy Day Fund.” *** Star-Ledger, Newark, February 3, 2009: “The Senate Budget and Appropriations Committee yesterday (February 2) approved some of the emergency measures to close a $2.1 billion gap in the $32.9 billion budget -- actions that the governor said should be enough to keep New Jersey’s finances in balance through June 30” *** Office of the Governor, February 17, 2009: Governor Jon S. Corzine today announced a total of $3.6 billion budget cuts and other actions to keep the State budget balanced in the wake of further declining revenues resulting from the national and global economic recession. . . . State Treasurer David Rousseau reported earlier today that State revenue collections for January fell $526 million --- nearly 18 percent below projections. Through January, total revenues are now $1.33 billion under projections for Fiscal Year 2009, which translates to a $2.8 billion shortfall by the end of the fiscal year. . . . The budget cuts and other actions Governor Corzine announced include (among other things) . . . a requirement that all State employees take two unpaid furlough days in May and June, saving $35 million; . . . utilizing $500 million that was previously set aside for debt relief and $200 million available from the Fiscal Year 2008 budget surplus; (and) accessing $450 million from the Rainy Day Fund. . . . Governor Corzine said these cuts, cost reductions and other actions are expected to total $3.6 billion, which will allow the State budget to remain balanced with a $150 million surplus.” In addition, the State will receive funds from the federal stimulus package. *** Bloomberg, March 5, 2009: “New Jersey’s Assembly approved $871 million in mid-year spending cuts. . . . The legislation . . . cuts funding to public schools by $75 million and shifts money between State accounts. . . . The legislation incorporates Corzine’s $1.3 billion in mid-year budget reductions requiring lawmakers’ approval and excludes items the governor can unilaterally reduce, such as many grants and his own staff spending. Besides the schools cut, it pares $15 million from hospitals and shifts as much as $275 million from the state’s rainy day fund.” *** Office of the Governor, March 10, 2009: In his FY 2010 Budget Address, Governor Corzine said, among many other things, that “ the budget I am proposing for FY 2010 totals $29.8 billion. . . . In FY 2009, declining revenues required cuts of over $2 billion in State spending; as it turns out, that was just the start.
The global recession took a further toll on our revenues, so we have cut almost $4 billion in baseline spending from this year's budget. But before we cut, we made a value-based judgment to take some things off the table. . . . We have increased, rather than cut, classroom funding for K-12 education. And with the federal government's help, we're giving our children a jump-start on a lifetime of learning.
This budget funds Pre-K education for 50,000 kids -- an important down payment on our commitment to universal early childhood education. Our increase in classroom funding allows the State to press ahead with a new formula for school aid that is rooted in educational needs and fairness -- not zip codes. . . . I want to again congratulate the legislature for passing the $3.9 billion school construction program that is about to put 15,000 to 20,000 New Jerseyans back to work while modernizing schools for hundreds of thousands of children. . . . With the help of key members of New Jersey's congressional delegation, we can be certain of advancing children's health in partnership with the federal government. . . . I am proposing to save $400 million in personnel costs through a wage freeze and furloughs for employees. . . . I am proposing a one-year, only, rate increase of ¾ of a percent for those earning more than $500,000. This new revenue, along with small increases in alcohol and cigarette taxes, will allow us to finish closing that $7 billion gap.” *** New Jersey Civil Service Commission, March 25, 2009: “The New Jersey Civil Service Commission today adopted an emergency rule that gives the State and local governments the ability to achieve budgetary savings through personnel measures short of permanent layoffs of public employees. The emergency rule permits State and local appointing authorities to implement temporary layoffs, also known as mandatory furloughs, for economy, efficiency or related reasons and allows a temporary layoff to be for one or more days during a defined time period." *** Office of the Governor, April 15, 2009: “Governor Jon S. Corzine today announced plans by State departments and agencies to implement one-day furloughs of State employees in May and June as a cost-saving measure. . . . Plans for implementing two furlough days in the current 2009 Fiscal Year were developed by the departments and submitted to the Governor’s Office for approval. Additional furlough days in the 2010 Fiscal Year that begins July 1 remain in the departmental planning process and have not yet been finalized.” *** Office of the Governor, April 16, 2009: “New Jersey’s school district funding allocations for Title I and IDEA (Individuals with Disabilities Education Act) under the American Recovery and Reinvestment Act total approximately $609 million, Governor Jon S. Corzine announced today. The State’s allocations under Title I are approximately $238 million, while the State’s IDEA allocations total $371 million. *** Office of the Governor, May 1, 2009: “Governor Jon S. Corzine announced today that the Department of Law and Public Safety will receive $29.7 million in Justice Assistance Grant (JAG) funding to support New Jersey ’s Safe Streets and Neighborhoods program. The grants are part of $424.8 million in American Recovery and Reinvestment Act (ARRA) funding announced by the U.S. Justice Department. . . . ‘These federal funds will provide significant support to important law enforcement initiatives aimed at reducing violent crime as well as support victim services,’ Attorney General Anne Milgram said. ‘In addition, we intend to use part of the money to support and expand community-based programs that are aimed at encouraging at-risk youth to build productive lives rather than turn to gangs and a life of crime, and support ex-offenders re-entry into their communities to reduce recidivism.’” *** Star-Ledger, Newark, May 6, 2009: “New Jersey's budget troubles tripled in three months, with the revenue gap ballooning to $1.2 billion for the current fiscal year that ends June 30, according to an analysis released yesterday (May 5). . . . A memo issued by the Office of Legislative Services (OLS) indicates the shortfall grew to $1.2 billion since March, fueled largely by April income tax collections that were about $800 million less than expected. OLS had previously pegged the shortfall at $383 million.” *** Office of the Governor, May 15, 2009: “Gov. Jon S. Corzine today outlined the latest $150 million in cuts he has ordered to State programs, pushing the total cuts to State government in FY2009 past the $2 billion mark. . . . The latest round of cuts just seven weeks before the end of the fiscal year on June 30 is in response to the steep decline in tax revenues collected by the State because of the ongoing national economic crisis. The Administration proposes to close the additional $1.2 billion shortfall by utilizing $450 million from the $700 million State surplus that was anticipated in March of this year. The surplus for FY 2009 would be reduced to $250 million for the remaining six weeks of the fiscal year. The solutions announced yesterday include $150 million in spending cuts in State departments and agencies. The balance of the $1.2 billion is offset by reducing the State’s pension contribution by $150 million and moving costs originally scored for payment in the current fiscal year to FY 2010. Those expenses include a school aid payment and grants for the Business Employment Incentive Program (BEIP).” *** Office of the Governor, May 18, 2009: “New Jersey State departments and agencies have begun a series of one-day closures. In April, Governor Jon S. Corzine announced plans to implement the one-day temporary layoffs in May and June in response to a steep decline in State revenues.” *** The Bond Buyer, New York City, May 20, 2009: “New Jersey will cut its debt service costs in fiscal 2010 by $144.8 million as the State in early June plans to refinance up to $350 million of general obligation debt in a plan approved yesterday (May 19). Spreading principal and interest payments over a longer period of time will cost the State $19.8 million from fiscal 2010 through fiscal 2023, yet offer budget relief in the next fiscal year which begins July 1.” *** Star Ledger, Newark, May 20, 2009: “Property tax rebate checks billed as long-term relief just a few years ago are the latest casualty of New Jersey's budget woes. Treasurer David Rousseau said Tuesday (May 19) that rebate checks would be canceled this year for all but senior citizens and disabled residents because the State budget is suffering a record loss in tax revenue in the bad economy.” *** Office of the Governor, May 28, 2009: “Governor Jon S. Corzine today praised the decision by the New Jersey Supreme Court affirming the constitutionality of the School Funding Reform Act of 2008. . . . ‘By agreeing that the new funding formula is constitutional and that the prior Abbott remedies are no longer necessary, the court has allowed us to focus in a unified and predictable way on meeting our obligation to all of our children while in no way prejudicing those who have benefited from the Abbott rulings in the past.’ The court concluded that the School Funding Reform Act (SFRA) is constitutional and may be applied to the Abbott districts. The opinion states that the SFRA may be implemented as it was designed, ‘as a state-wide unitary system of education funding.’ The court further ruled that the State is not required to continue the separate funding streams that had been mandated under past orders as continuation of supplemental funding may undermine or distort the effectiveness of SFRA. . . . A report released by the Department of Education in December 2006 outlined the components of a school funding formula, and the Department began a series of public hearings and meetings with legislators and other stakeholders. The new plan established an adequacy budget for each district based on children's needs and determined a local fair share for each municipality based on accurate assessments of income and property values. . . . Governor Corzine announced the proposed School Funding Reform Act on Dec 12, 2007; the Legislature passed it on January 7, 2008 and Governor Corzine signed the measure into law on January 13, 2008.” (NOTE: Abbott is the shorthand description of a series of New Jersey Supreme Court decisions growing out of litigation filed in 1981 in behalf of children residing in New Jersey’s most economically disadvantaged municipalities.) *** North Jersey Media Group (14 locations in NJ), June 1, 2009: “Governor Corzine's preschool expansion plan — a major part of the new school funding law that won constitutional approval by the State Supreme Court last week — is on hold, with no funds for new classes included in next year's recession-crunched budget. . . . New Jersey plans to vastly increase its preschool program under a new school funding law, which guarantees full-day classes to every low-income 3- and 4-year-old at an estimated cost of $350 million. The State already serves more than 40,000 preschoolers in full-day programs at a cost of more than $500 million a year through the court-ordered Abbott program. But for now, an estimated 6,100 new preschoolers will not start school in September as planned.” *** Star Ledger, Newark, June 18, 2009: “Gov. Jon Corzine announced a scheduled vote today on the State's $28.6 billion budget has been postponed after the State got at least a $400 million windfall from its tax amnesty program. . . . . . .State officials had anticipated $200 million.” *** New York Times, June 26, 2009: “New Jersey lawmakers passed a $29 billion budget largely along partisan lines on Thursday night (June 25) that will increase taxes by almost $1 billion, eliminate property-tax deductions for the wealthiest residents, and pare billions from health care, higher education and other programs. The bulk of the new revenue in the budget, which is $4 billion less than the current budget, will come from a one-year increase in the income tax on people making more than $400,000 a year, or roughly 61,000 residents. Taxes will go up by 12.5 cents per pack on cigarettes, and 25 percent on hard liquor and wine. People who win $10,000 or more in the lottery will see their good fortune taxed as well.” *** Office of the Governor, June 29, 2009: “Governor Jon S. Corzine today signed legislation adopting a $29 billion budget for FY2010. . . . The bare-bones appropriations act (A-4100/S-2010) is an unprecedented reduction in the size of State government. Every department, agency and authority was ordered to make cuts. There were more than 850 line items eliminated or reduced.” This news release includes a list of earlier budget-related measures signed by the Governor. On the same day, the Governor issued “The Good Things About the FY 2010 Budget,” a summary that details how the budget (a) provides significant property tax relief to all New Jerseyans; (b) offers record-high levels of property tax relief to seniors; (c) avoids budgetary bedlam experienced in California and other States; (d) dramatically cuts spending; (e) increases direct funding for schools by nearly $280 million to $8.8 billion; (e) makes college more affordable; (f) preserves access to health care; (g) increases funding for mental health services; (h) protects services for the most vulnerable; and (i) returns a tax amnesty windfall to taxpayers. * ** Office of the Governor, July 17, 2009: “Governor Corzine announced today that, with the completion of his second formal initiative in the last three years to reduce the number and usage of State cars, New Jersey's fleet of passenger vehicles has fallen to under 9,700 -- the lowest point since 2004. . . . Through a vehicle ‘recall’ ordered by Governor Corzine this year, State agencies took 445 vehicles out of service. . . . The recall will reduce the State's annual maintenance and fuel expenses by an estimated $1.1 million, while also reducing the environmental impact from the State fleet. After all vehicles from the 2009 recall are auctioned, the State anticipates an additional $500,000 in revenue.” * ** U.S. Bureau of Labor Statistics, July 17, 2008: New Jersey’s seasonally adjusted unemployment rate in June 2009 was 9.2 percent -- up from 5.2 percent in June 2008. New Jersey is among the States with statistically significant employment rate changes during that period. *** Bloomberg, August 3, 2009: New Jersey “ was reduced to a negative credit-rating outlook -- from stable -- by Moody’s Investors Service, which said the recession hurt tax revenue and led the State to deplete its reserves. New Jersey’s . . . net tax-supported debt load is the third highest among U.S. States after California and New York.” *** Office of the Governor, August 7, 2009: Governor Corzine “announced that New Jersey has secured $10.2 million in funds from the U.S. Department of Housing and Urban Development (HUD) to put its Homelessness Prevention and Rapid Re-Housing Program into action. Funding is being made available through the federal American Recovery and Reinvestment Act of 2009.” * ** Office of the Governor, August 11. 2009: Governor Corzine announced “that Treasury's Division of Purchase and Property has issued a Notice of Intent to Award a new contract that will save New Jersey taxpayers approximately $540 million over the next five years in the cost to deliver pharmacy benefits to active and retired public workers in the State Health Benefits Program (SHBP) and the School Employees Health Benefits Program (SEHB). . . . In an effort to deliver these benefits at a lower cost to taxpayers, the Corzine Administration, through the State Health Benefits Commission and the SEHB Commission, directed in 2008 that the pharmacy benefits component be managed separately and directly by the State, effective January 1, 2010. . . . Under the contract to be awarded, the cost would be reduced to $5.82 billion, a savings of $540 million over the life of the contract, or $108 million annually.” *** Office of the Governor, August 13, 2009: Governor Corzine “today signed legislation requiring New Jersey health insurers to provide diagnostic coverage for screening for autism and other developmental disabilities. The measure, A-2238/S-1651, also includes therapeutic services, including any medically-necessary occupational, physical and speech therapy. . . . Under this bill, insurance companies would be required to provide up to $36,000 per year for medically-necessary behavioral early intervention for all patients with autism, and with other developmental disabilities, who are under 21 years of age. Of 15 states, New Jersey is the first to include other developmental disabilities along with autism in this type of insurance legislation.” * ** Office of the Governor, September 1, 2009: Governor Corzine issues “a statement regarding the Federal Reserve Bank of Philadelphia's Third District Leading Indexes Report for July 2009 indicating that New Jersey's economy returned to positive growth in the last seventeen months.” ‘’” ________________________________ Governor Corzine Signs $32.9 Billion Budget, Office of the Governor, June 30, 2008:http://www.nj.gov/governor/news/news/2008/approved/20080630b.html*** Citizens’ Guide to the June 2008 Budget for Fiscal 2009:http://www.state.nj.us/treasury/omb/publications/09citizensguide/pdf/citguide.pdf
Corzine Starts Push to Sell NJ Debts to Investors, The Star-Ledger, Newark, November 7, 2008:http://www.nj.com/news/index.ssf/2008/11/corzine_starts_push_to_sell_nj.html
Corzine Proposes $2.1 Billion in Cuts, NorthJersey.com, Hackensack, January 2, 2009:http://www.northjersey.com/news/njpolitics/cuts010209.html*** The Governor’s planned FY 2009 spending reductions are available at:http://www.state.nj.us/treasury/news/2009/p090105a.pdf
State Revenues Below Projections for Third Straight Month, New Jersey Department of the Treasury, January 16, 2009:http://www.state.nj.us/treasury/news/2009/p090116a.pdf
Corzine to Unveil New Cuts When He Offers 2010 Budget, Star-Ledger, Newark, February 3, 2009:http://www.nj.com/news/ledger/jersey/index.ssf?/base/news-
12/1233638715158180.xml&coll=1
Governor Corzine Announces Additional Budget Cuts to Shore Up State Finances, Office of the Governor, February 17, 2009:http://www.nj.gov/governor/news/news/2009/approved/20090217a.html
New Jersey Assembly Passes Corzine’s $871 (mid-year) Million Cut, Bloomberg, March 5, 2009:http://www.bloomberg.com/apps/news?pid=20601103&sid=a42KULm.tYLk&refer=us
The FY 2010 Budget Address, Office of the Governor, March 10, 2009:http://www.nj.gov/governor/home/budget10/index.html*** See the Governor’s entire proposed budget at:http://www.state.nj.us/treasury/omb/publications/10bib/AbbrevBudget.pdf*** Also see the new Recovery and Reinvestment website on the use of federal stimulus funds:http://www.recovery.nj.gov/
Emergency Rule Adopted to Allow Personnel Management Flexibility, New Jersey Civil Service Commission, March 25, 2009:http://www.state.nj.us/csc/newsroom/press-09/032509.htm
Governor Corzine Announces State Departments’ and Agencies’ Furlough Plans, Office of the Governor, April 15, 2009:http://www.nj.gov/governor/news/news/2009/approved/20090415a.html
Governor Corzine Announces $609 Million in American Recovery and Investment Act funds for Title I and IDEA:http://www.nj.gov/governor/news/news/2009/approved/20090416a.html
New Jersey One of 20 States to Receive Justice Assistance Grant (JAG) Funding, Office of the Governor, May 1, 2009:http://www.nj.gov/governor/news/news/2009/approved/20090501b.html
Shortfall Triples to $1.2 Billion in N.J. Budget, Star-Ledger, Newark, May 6, 2009:http://www.nj.com/news/ledger/jersey/index.ssf?/base/news-
13/1241610317227450.xml&coll=1
Governor Outlines $150 Million in Additional Budget Cuts, Office of the Governor, May 15, 2009:http://www.nj.gov/governor/news/news/2009/approved/20090515b.html*** The May 15 budget update is available at:http://www.state.nj.us/treasury/omb/publications/10budget/pdf/revenueupdate.pdf*** Also see coverage in the Star Ledger, Newark, on May 19:http://www.nj.com/news/index.ssf/2009/05/nj_treasurer_announces_steps_t.html
New Jersey Departmental and Agency Furloughs Underway, Office of the Governor, May 18, 2009:http://www.nj.gov/governor/news/news/2009/approved/20090518a.html
New Jersey to Re-Fund $350M, The Bond Buyer, New York City, May 20, 2009:http://www.bondbuyer.com/article.html?id=20090519VBLSY26L
Say Goodbye to Property-Tax Rebates, N. J. Treasurer Says, Star Ledger, Newark, May 20, 2009:http://www.nj.com/news/index.ssf/2009/05/property_tax_rebates_latest_ca.html
Governor Corzine Hails Supreme Court Decision, Office of the Governor, May 28, 2009:http://www.nj.gov/governor/news/news/2009/approved/20090528a.html
Budget Crunch Delays Preschool Expansion, North Jersey Media Group, June 1, 2009:http://www.northjersey.com/education/educationnews
/Budget_crunch_delays_preschool_expansion.htmlN.J. Legislature Postpones Budget Vote After State Gets Unexpected $400M Windfall, Star Ledger, Newark, June 18, 2009:http://www.nj.com/news/index.ssf/2009/06/vote_on_state_budget_postponed.htmlNew Jersey Passes Budget Fueled by $1 Billion in Tax Increases, New York Times, June 26, 2009:http://www.nytimes.com/2009/06/26/nyregion/26jersey.html?ref=nyregionGovernor Corzine Signs $29 Billion State Budget That Reflects Ethic of Shared Responsibility, Office of the Governor, June 29, 2009:http://www.nj.gov/governor/news/news/2009/approved/20090629.html*** Also see “Ten Good Things About the FY2010 Budget,” Office of the Governor, June 29, 2009:http://www.nj.gov/governor/news/features/2009/approved/20090629.html*** Also see budget dollar details, Associated Press, June 29, 2009:http://www.philly.com/philly/wires/ap/news/state/new_jersey
/20090629_ap_highlightsofnjbudgetapprovedthursday.htmlGovernor Corzine Moves Another 445 State Vehicles Out of the Fleet and Onto Auction Block, Office of the Governor, July 17, 2009:http://www.nj.gov/governor/news/news/2009/approved/20090717.htmlRegional and State Employment and Unemployment Summary, U.S. Bureau of Labor Statistics, July 17, 2009:http://www.bls.gov/news.release/laus.nr0.htmN.J. Rating Outlook Cut by Moody’s on $31 Billion, Bloomberg, August 3, 2009:http://www.bloomberg.com/apps/news?pid=20601087&sid=a6y_yukhLUtsNew Jersey Secures $10.2 Million in Funds for Homelessness Prevention and Rapid Re-Housing, Office of the Governor, August 7, 2009:http://www.nj.gov/governor/news/news/2009/approved/20090807.htmlPharmacy Benefits Contract Saves State and Local Governments $540 Million in RX Costs, Office of the Governor, August 11. 2009:http://www.nj.gov/governor/news/news/2009/approved/20090811b.htmlGovernor Corzine Signs Legislation Enhancing Insurance Coverage for Autism Screening and Other Developmental Disabilities, Office of the Governor, August 13, 2009:http://www.nj.gov/governor/news/news/2009/20090813.htmlGovernor’s Statement Regarding Federal Reserve Bank Report, Office of the Governor, September 1, 2009:http://www.nj.gov/governor/news/news/2009/approved/20090901a.html
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Last Updated ( Wednesday, 09 September 2009 )
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