THE U.S. FINANCIAL CRISIS AND ITS EFFECTS ON CHILDREN, YOUTH, FAMILIES, SCHOOLS AND SERVICES
STATES: SOUTH DAKOTA TO WYOMING
Updated on July 2, 2009
These are chronologies of developments in the fiscal situations of States. States that are not currently shown will be added.
Links to full texts follow the sequence of annotations.
South Dakota: Revenues Move From Good to Not So Good Compiled from various sources named in the text and in the links to full coverage below.
“**Bureau of Finance & Management, August 5, 2008: This report on the economy stated that “South Dakota’s current dollar Gross Domestic Product totaled $33.9 billion in 2007, which was a 6.0% increase over 2006. South Dakota’s current dollar GDP by State growth rate from 2006 to 2007 ranked 11th highest nationally.” The report also noted that jobs continue to be added in South Dakota; the unemployment rate is one of the lowest in the nation; income continues to grow; fewer family housing units were authorized by building permits between July 2007 and June 2008; and South Dakota farm real estate value was up 21% from 2007. *** Office of the Governor, November 25, 2008: “Gov. Mike Rounds today announced a freeze on State government hiring, all non-mandatory out-of-state travel, and large capital expenditures within the executive branch. The freeze is effective immediately. ‘State government is adjusting financially, just as most American families are doing right now,’ said the Governor. “To get through this tough economic period, we will cut back and delay spending in many areas over the next several months. . . . ‘Several weeks ago I asked all Cabinet Secretaries and Bureau Commissioners to look for ways to tighten expenditures and save money, They’ve done a good job, but this next step is necessary until the economic picture across the nation improves.’” *** Office of the Governor, December 2, 2008: “Gov. Mike Rounds today delivered his FY2010 Budget Address to a joint session of the South Dakota Legislature at the Capitol Building in Pierre. Highlights include (a) a very cautious budget; (b) an uncertain economy; (c) running out of reserves; (d) funding only our basic needs; (e) taking care of people; (f) protecting the public; (g) educating our children.” *** The Daily Republic, Mitchell SD, December 3, 2008: This article provides details about the Governor’s FY 2010 budget. “Gov. Mike Rounds has proposed a $3.7 billion State budget he describes as a cautious approach that spends money only on basic needs because the economic slump is expected to severely limit revenue growth. . . . While the governor is proposing a 3 percent increase in State aid to education, he also wants to save money by eliminating some categories of aid to schools. . . . To balance the next budget, Rounds is proposing to use $32.4 million in reserves. . . . South Dakota law requires that State aid to school districts must increase each year by the rate of inflation or 3 percent, whichever is less. . . . However, the governor’s plan would reduce State spending on school aid by freezing local levies for school property taxes at this year’s rates, which would mean more of the cost in increased spending per pupil would be supported by local property taxes. . . . Rounds said he also wants to cut State spending by eliminating extra aid that has gone to schools with declining or increasing enrollments.” *** Office of the Governor, January 13, 2009: In his State of the State Address, the Governor said that “six weeks ago, I gave you a very cautious budget for these uncertain economic times. . . Unfortunately our economy is weakening faster than we anticipated. It had been estimated that the revenues in December would be $86 million from all our resources but, instead, they totaled only $80.9 million for the month. . . . Although we are in better shape than other States, we must take additional steps this session to address the decreases in tax collections. Therefore, I am asking to speak to you again in joint session on Thursday, January 22, to give you a new, adjusted budget proposal.” *** Office of the Governor, January 22, 2009: “Gov. Mike Rounds released a revised budget Thursday that is designed to offset the effects of recession and bring ongoing State expenditures in line with an expected reduction in State revenue collections for the remainder of this fiscal year and perhaps much of next year. . . . He said this year’s State budget, running through June 30, would be $52.2 million short, and the shortfall in the next fiscal year would total $81.6 million unless spending is curtailed.” *** Bureau of Finance and Management, January 22, 2009: This office made available the Governor’s revised recommended 2010 budget in which the State Aid category “includes State aid to K-12 education, postsecondary vocational education institutes, and technology in the schools. . . . The per-student allocation for State aid to general education will be $4,804.60 for FY 2010, an increase of $139.94 over the FY2009 base rate of $4,664.66. The Governor is recommending no inflationary increase within State aid to special education, which will result in a reduction of $1,632,256 in general funds from the December recommended budget. The total FY 2010 Governor’s revised recommended budget for State aid to special education is $46,795,542 in general funds. Also included in the revised FY 2010 budget is the elimination of the funding for the National Board of Certified Teachers, the Alternative Education program, and the Teacher Compensation Assistance Program. . . . The Governor is recommending a reduction of $309,226 in general funds for the technology in schools budget. . . . The Governor’s revised budget versus the December recommended budget for FY2010 for the Department of Education (including the State aid to education formula) reflects decreases of $3,713,966 in general funds; $2,778,999 in federal fund expenditure authority; and $9.205,597 in other fund expenditure authority.” The revised recommended budget also contains other provisions pertaining to education. One of these proposes to “redefine the mission of the South Dakota School for the Deaf to an outreach education and support role, closing the instructional site in Sioux Falls . . . (and to) to create a larger, more robust outreach staff of deaf education teachers and specialists providing services to deaf and hard of hearing children and local schools across the State.” (NOTE: This recommendation was not included in the final budget approved by the Legislature -- see March 13 below.) *** Office of the Governor, January 27, 2009: “The Bureau of Labor Statistics reports South Dakota’s seasonally adjusted unemployment rate at 3.9 percent in December 2008. That was a full one-percentage-point increase over the 2.9 percent rate in December 2007. . . . ‘The last two months have seen significant increases in our unemployment rate. This is not good news for South Dakota citizens,’ said Gov. Mike Rounds. ‘Nor is it good news for legislators who will be challenged to meet the current shortfall with regards to balancing our State budget.’” *** KELOLAND TV, Sioux Falls, March 13, 2009: “The main run of South Dakota's legislative session came to an end Friday (March 13) as the House and Senate passed a $3.9 billion State budget. The budget for the year beginning in July was balanced with the help of a massive infusion of federal money from the stimulus measure passed by Congress. . . . The budget boosts State aid to schools by 3 percent, saves the State Fair, and keeps the South Dakota School for the Deaf operating in Sioux Falls. But it does not provide any pay raise for State employees.” (Note: Governor Rounds subsequently signed the budget bill on March 18.) *** Chamberlain/Oacoma Sun, March 18, 2009: This article provides details about the budget that the Governor signed on March 18. The $3.9 billion total is “an increase of $300 million over what Rounds had proposed in January. . . . Over $44 million of (federal) stimulus money helped to fill in budget gaps within the Department of Education, the Board of Regents and the Department of Corrections. . . . ‘We could not do everything,’ Rep. Larry Tidemann, R-Brookings, chairman of the Joint Appropriations Committee, said. ‘It’s important to know we still face the structural deficit of over $88 million in 2010, but we have time on our side to help us.’ The Governor’s office took a 2 percent hit in funding for the 2010 fiscal year, saving the State $100,000 in general funds. . . . State health care providers for the elderly and disabled didn’t see any cuts in funding, but . . . Medicaid provider funding didn’t increase either. . . . (Sen. David Knudson said that) because the Legislature saved approximately $65 million for the 2011 budget, those providers will see an increase in funding next year.” *** Office of the Governor, April 9, 2009: “The South Dakota Department of Labor (DOL) has received almost $3 million in federal stimulus funds for youth job training. DOL will pay the wages for eligible participants, 14 to 24 years old, who are employed in a newly created work experience. Private sector businesses, non-profit organizations and government agencies are all encouraged to create job training opportunities. Training can include summer jobs for youth, along with paid summer internships for college and technical institute students.” *** Office of the Governor, May 11, 2009: “Gov. Mike Rounds announced a new program today to provide child care assistance for recently unemployed South Dakotans while they search for work, beginning June 1. The temporary program is one of several child care initiatives to be funded by the American Recovery and Reinvestment Act. . . . The U.S. Department of Human Services will provide South Dakota with $5.4 million in ARRA funds for temporary child care assistance. . . . In addition to providing free child care for recently unemployed South Dakotans, the Department of Social Services will use the funding to reduce co-payments for families receiving child care assistance through an existing program, to develop grant opportunities for child care providers, and to offer grants for rural school-age programs.” *** Office of the Governor, June 1, 2009: “Gov. Mike Rounds says a new law will allow children with pre-existing health conditions and no health care coverage to join the South Dakota Risk Pool, starting July 1. . . . Children who have been without health coverage for at least six months and meet eligibility requirements may enroll beginning July 1, with a six-month, pre-existing-condition waiting period.” *** Capital Journal, Pierre, June 26, 2009: “South Dakota businesses will be required to pay an estimated $36.1 million in surcharges in 2010 to shore up the State unemployment insurance (UI) system, according to the latest analysis released Thursday by the State Labor Department. The extra payments would be levied on all employers on a per-worker basis, regardless of the type of business or its unemployment history. The surcharges would be in addition to the $26.5 million of normal payments and interest that the UI system is expected to receive in 2010. . . . What Labor’s forecast shows is the UI system will go broke this winter and need at least $6.6 million to get through December. Then it will fall $9 million deeper into the hole during the first quarter of 2010, as the surcharge revenue begins to flow in. . . . The council members formally voted Thursday to re-consider their earlier position. They will now take a new look at whether to pursue an additional $11.7 million available in one-time federal (stimulus) supplements. South Dakota would need to expand some of its unemployment benefits, based on choices from a federal menu, in order to qualify. . . . The changes would need legislative action and likely will spark a debate about whether it’s better to accept the $11.7 million and face paying more in benefits for an indefinite period of years. . . . For the third week of June, there were 5,839 unemployment claimants. They received $1,579,793 in benefits. In comparison, there were 1,452 claimants for the similar week in 2008. They received $329,120 in benefits.” (NOTE: The South Dakota Department of Labor shows that the May 2009 seasonally adjusted unemployment rate was 5.0 percent.) _________________________________ The South Dakota Economy, South Dakota Bureau of Finance & Management, August 5, 2008 http://www.state.sd.us/bfm/econ/August%202008.pdf Gov. Rounds Implements Cost Saving Measures, Office of the Governor, November 25, 2009 -- Click Newsroom at the left and see the news archive: http://www.state.sd.us/governor/ Gov. Rounds Delivers State Budget Address, Office of the Governor, December 2, 2009 -- Click Newsroom at the left and see the news archive: http://www.state.sd.us/governor/ *** Also see the Governor’s 2010 Education Initiative http://www.2010education.com/ Rounds Wants to Use Reserves for South Dakota Budget, The Daily Republic, Mitchell SD, December 3, 2008: http://www.mitchellrepublic.com/articles/index.cfm?id=30651§ion=news State of the State 2009, Governor of South Dakota, January 13, 2009 -- Click at the right of the Governor’s home page: http://www.state.sd.us/governor/ Governor Brings Revised Budget to Legislature, Office of the Governor, January 22, 2009 -- -- Click Newsroom at the left and see the news archive: http://www.state.sd.us/governor/ Governor’s Revised Budget, Fiscal Year 2010, Bureau of Finance and Management, January 22, 2009: http://www.state.sd.us/bfm/budget/revisedrec10/ *** The Governor’s revised FY 2010 budget is available at: http://www.state.sd.us/bfm/budget/revisedrec10/ South Dakota Unemployment Rate Steadily Climbing, Office of the Governor, January 27, 2009 -- Click Newsroom at the left and see the news archive: http://www.state.sd.us/governor/ Legislature Passes $3.9 Billion Budget, KELOLAND TV, Sioux Falls, March 13, 2009: http://www.keloland.com/News/NewsDetail6375.cfm?Id=0,81930 *** Details on the appropriated budget for fiscal 2010 are available in the “Budget in Brief” at: http://www.state.sd.us/bfm/
South Dakota Legislature Adopts 2010 Budget, Chamberlain/Oacoma Sun, March 18, 2009: http://www.chamberlainsun.com/news.php?item.404.1 South Dakota’s American Recovery and Reinvestment Act website, launched on April 2, is at: http://recovery.sd.gov/ Labor Stimulus Funds Help Employers With Wages, Teach Young Workers New Skills, Office of the Governor, April 9, 2009 -- Scroll to April 9 press releases: http://www.state.sd.us/news/archive.aspx Governor Rounds Announces Child Care Assistance for Unemployed South Dakotans, Office of the Governor, May 11, 2009 -- Click Newsroom at the left and see the news archive: http://www.state.sd.us/governor/
Governor Rounds Announces New South Dakota Risk Pool, Office of the Governor, June 1, 2009 -- Click Newsroom at the left and see the news archive: http://www.state.sd.us/governor/
Tennessee: Revenues Diminish Over Time Compiled from various sources named in the text and in the links below.
*** Office of the Governor, May 12, 2008: “Governor Phil Bredesen today unveiled his revised budget proposal for Fiscal Year 2008-2009. In an address to a joint session of the General Assembly , Bredesen outlined his plan to trim the budget he proposed in January by an additional $468 million. . . . State revenue collections have deteriorated significantly in recent months with the national economic recession. April was the worst month for collections year over year since the State began tracking revenues in 1961 -- with 5 percent negative growth. . . . Despite the reductions, the proposed budget protects public education by fully funding Tennessee’s Basic Education Program and provides new dollars for inflationary growth. This fulfills Bredesen’s commitment to continually fund growth in pre-K-12 education -- although no new pre-K classrooms will be added next year. . . . Last week, Bredesen announced a voluntary buy-out plan to reduce the number of employees in the executive branch by t percent.” *** Kingsport Times News, April 23, 2008: At the national Pre--K Now conference, “Tennessee Gov. Phil Bredesen said Wednesday that a proposed additional $25 million investment in pre-kindergarten programs will be scaled back because of the State’s negative budget situation for the coming fiscal year. . . . In its annual ‘Leadership Matters’ report released Wednesday, the advocacy group (Pre-K Now) singled out Bredesen as one of 16 governors across the country working to expand pre-K in the face of budget and political pressures.”. *** Office of the Governor, September 30, 2008: “Governor Phil Bredesen has announced there will be no rate increase in CoverTN premiums in 2009 and the number of primary care physician visits will be doubled. . . . ‘It has always been the goal of CoverTN to offer preventive services first so that members have access to most of the health services they’ll need in a year, like doctor visits and prescription medications,’ Bredesen said. ‘I am particularly glad that we can expand the benefits current members receive while helping more people who don’t have health insurance get into CoverTN.’ The announcement of these improvements, which become effective Jan. 1, 2009, comes on the heels of the addition of a new eligibility category known as Tennesseans Between Jobs.” NOTE: The new eligibility category was proposed by the Governor earlier this year and passed by the General Assembly in May 2008. *** Commercial Appeal, Memphis, November 25, 2008: “Gov. Phil Bredesen told Tennessee’s top public higher education officials today that he doesn’t want the huge cuts in State funding for their campuses balanced on the backs of students through big tuition hikes, and they must be ready soon to make ‘real’ cuts. Wrapping up his annual budget hearings, the governor said higher education likely faces a $150 million cut in State appropriations starting next July 1 (or upwards of 15 percent) and that because of the slow pace of change in academia, campus leaders must prepare now. . . . ‘We’ve got a great higher education system. I’m really proud of the progress we’ve made. We’ve just got to hunker down like the rest of America,’ he said.” *** Department of Finance and Administration, January 9, 2009: “Overall December revenues were $811.0 million, or $83.7 million less than the State budgeted, with sales tax collections for December – reflecting November spending – coming in at a record low rate of negative 10.28 percent. ‘December is the fifth consecutive month this fiscal year in which sales taxes and corporate income taxes have recorded negative growth rates,’ Finance and Administration Commissioner Dave Goetz said. ‘December also made history – with the largest single negative growth month for sales tax collections on record.’ December is the tenth month in the past year that sales taxes had negative growth rates. Sales taxes comprise more than 60% of the State’s revenue collections. In spite of this year’s unprecedented shortfall in tax revenues we will meet our constitutional mandate and end this fiscal year with a balanced budget, Goetz said. On an accrual basis, December is the fifth month in the 2008-2009 fiscal year. *** Chattanooga Times Free Press, January 15, 2009: “Gov. Phil Bredesen said Wednesday (January 14) the State may have to lay off ‘north of 2,000’ State employees under a budget-cutting scenario that he intends to bring to State legislators next month. . . . The State will need to cut about $900 million in the 2009-2010 budget as (the Governor) grapples with recession-induced shortfalls that have put most States’ revenues in downward spirals. . . . Tennessee State Employees Association Executive Director Jim Tucker . . . noted that about 1,500 State workers already accepted early buyout offers. . . . Gov. Bredesen said he hopes to use money from President-elect Barack Obama’s proposed federal stimulus package to avoid even worse layoffs:” *** Office of the Governor, February 9, 2009: “Governor Phil Bredesen today delivered his seventh State of the State Address to the members of the 106th General Assembly, outlining a path forward that will ensure Tennessee’s financial position remains sound while focusing on the basics: improving education, job creation and health care. . . . ‘When people lose their jobs, they often lose their health insurance as well,’ the Governor said. ‘We know that additional people will qualify for TennCare, and we are planning for that in the budget.’ . . . The Governor called for continued progress on his number one priority – education – pointing to the State’s work over the past year to revise standards and establish new rules for the certification of teachers to attract highly qualified teachers from a broader pool of talent. He also urged the State’s higher education officials to work with him and the General Assembly to keep higher education affordable, get more kids to graduate, and create a true 21st century higher education system for Tennessee. . . . Bredesen’s third basic is job creation. Tennessee had major successes in the past year with Volkswagen in Chattanooga and Hemlock in Clarksville among the biggest catalysts for job creation.” ** Office of the Governor, March 23, 2009: “Governor Phil Bredesen today unveiled his proposed budget for Fiscal Year 2009-2010 in an address to a joint session of the General Assembly. The multi-year proposal outlines the use of approximately $5 billion in federal funds provided by the American Recovery and Reinvestment Act within an overall framework of declining State revenues. . . . The four-year proposal addresses plans for closing out the current budget year, provides details on the $29.34 billion budget for Fiscal Year 2009-2010 . . . and outlines State spending for the two subsequent budget years. Governor Bredesen’s proposal: (a) protects education by fully funding the Basic Education Program, the State’s funding formula for K-12 education, in each year; (b) ramps down spending in the discretionary and non-BEP areas of the budget to achieve a reduction of approximately 12 percent on average at the end of the four-year period; (c) saves jobs by limiting layoffs and defers the need for possible furloughs as Recovery Act funds provide more time to plan reductions and realize reductions made through natural attrition; (d) fully funds the economic development projects currently underway; (e) keeps the employee pension fund actuarially sound and the State health insurance program fully funded; and, (f) maintains healthy cash reserves while ramping down State spending to achieve continued balanced budgets that match recurring revenues to recurring expenses. The Governor’s address included an overview of Recovery Act funds for Tennessee. The federal legislation clearly directs approximately $2.9 billion of the total, or approximately 58 percent, for pre-determined purposes intended primarily to alleviate suffering and stimulate the economy. Examples include $490 million for the food stamp program, an additional $318 million for unemployment insurance, and $573 million for road and bridge infrastructure. . . . Some of the funds pass through the Tennessee State budget, while others are paid directly to non-state agencies, including $524 million that will be paid directly to local school districts, primarily based on their proportions of low-income and special education students. The remaining Recovery Act funds, totaling approximately $2.1 billion, more directly aid the State budget over a two-year period. A little more than half of that comes from the federal government temporarily shouldering more of the costs of TennCare, the State’s Medicaid program, so State dollars can be used to protect important programs elsewhere. The rest comes from a direct appropriation of fiscal stabilization funds, primarily in support of education. . . . Approximately $500 million goes directly to higher education.” *** Department of Finance and Administration, April 8, 2009: “Tennessee revenue collections continue to fall short of budgeted estimates. Overall March revenues, which reflect February sales, came in $106.2 million less than the State budgeted for, with collections totaling $779.5 million. March is the eighth consecutive month this fiscal year in which sales taxes and corporate income taxes have recorded negative growth over a year ago,” Finance and Administration Commissioner Dave Goetz said. “March also becomes the thirteenth negative growth month for sales tax collections out of the last fifteen months, starting with January 2008. On an accrual basis, March is the eighth month in the 2008-2009 fiscal year. The general fund was under-collected by $100.4 million and the four other funds were under-collected by $5.8 million.” *** Department of Workforce and Labor Development, April 23, 2009: “Tennessee's seasonally adjusted unemployment rate for March 2009 was released last week at 9.6 percent, 0.6 percentage point higher than the revised February rate of 9.0 percent. The United States’ unemployment rate for the month of March was 8.5 percent. . . . Perry County had the State’s highest unemployment rate at 25.4 percent, up from 24.1 in February, followed by Scott County at 18.8 percent, up from 18.0 percent in February. Knox County had the State’s lowest major metropolitan rate of 7.3 percent, up 0.2 percentage point from the February rate. .Davidson County was 7.9 percent, up 0.4 from the previous month. Hamilton County was at 8.0 percent, up 0.1 percentage point from the February rate, and Shelby County was 8.9 percent, up from the February rate of 8.5 percent.” *** Department of Finance and Administration, May 7, 2009: “Tennessee revenue collections continued to decline in April, once again falling short of budgeted estimates. Finance and Administration Commissioner Dave Goetz reported today that overall April revenues were $1.216 billion, which is $189.6 million less than the State budgeted. . . . The general fund was under collected by $164.3 million, and the four other funds were under collected by $25.3 million. . . . Year-to-date collections for nine months were $887.6 million less than the budgeted estimate. The general fund was under collected by $807.9 million and the four other funds were under collected by $79.7 million. . . . On an accrual basis, April is the ninth month in the 2008-2009 fiscal year.” *** Office of the Governor, May 20, 2009: “Governor Phil Bredesen announced today the U.S. Department of Education has approved Tennessee’s application for the first $635 million available to the State through the American Recovery and Reinvestment Act (ARRA) State Fiscal Stabilization Fund program. This represents 67 percent of the total stabilization funding available to Tennessee under this Recovery Act program. Tennessee will be eligible to apply for the remaining $313 million this fall.’ . . . The Governor said that ‘In addition to protecting teacher jobs and the additional support these funds will provide to both K-12 and higher education over the next two years, the education reform assurances required by the program are aligned perfectly with the goals we have already established in Tennessee for dramatic educational improvement.” . . . . The news release describes Tennessee’s accomplishments in the four reforms required for use of ARRA funds. *** News Channel 5, Nashville, May 27, 2009: This article reports on Governor Bredesen’s updated FY 2010 spending plan. “The Democratic governor's proposal would eliminate 717 filled positions and another 656 vacant jobs (among State employees). State Finance Commissioner Dave Goetz told lawmakers Wednesday that laid off employees will be offered a severance package to include two years worth of tuition at State colleges and money to help defray the cost of extending their health insurance coverage.” *** Tennessee Department of Education, June 1, 2009: “Tennessee Governor Phil Bredesen and Education Commissioner Dr. Timothy Webb today joined the Common Core State Standards Initiative, a state-led process to develop common English-language arts and mathematics standards. The Common Core State Standards Initiative will be jointly led by the National Governor’s Association Center for Best Practices and the Council of Chief State School Officers . By signing a Memorandum of Agreement, Governor Bredesen and Commissioner Webb join their colleagues across the country in committing to joining a state-led process to develop a common core of State standards in English-language arts and mathematics for grades K-12.” *** Commercial Appeal, Memphis, June 3, 2009: “The legislature revised the unemployment insurance program Tuesday, raising taxes on employers and expanding benefits for workers who lose their jobs. For the unemployed, the bill provides a new benefit of $15 per dependent under age 18, up to a maximum $50 per week, in additional unemployment pay. The current maximum benefit is $300. . . . If Tennessee's unemployment rate remains high (as set by a federal formula), the bill extends eligibility for jobless benefits by an additional 20 weeks to a maximum of 79 weeks. The unemployment rate in April was 9.9 percent. . . . (In addition to employer taxes, the bill) is funded with $141 million in federal economic stimulus fund. ••• Department of Finance and Administration, June 8, 2009: “The decline in State tax collections continued for a tenth consecutive month in May, as overall May revenues were $716.5 million, or $123.3 million less than the state budgeted. May also marks the fifteenth month of negative growth for sales tax collections in the past 17 months. . . . The general fund was under-collected by $111.9 million, and the four other funds were under-collected by $11.4 million. . . . Year-to-date collections for ten months were $1.011 billion less than the budgeted estimate. The general fund was under collected by $919.8 million and the four other funds were under collected by $91.1 million. . . .On an accrual basis, May is the tenth month in the 2008-2009 fiscal year. . . . ‘As the State’s revenue collections continue to deteriorate, we have to rely on a combination of reserves and reducing recurring expenses to help stabilize the budget,’ Finance & Administration Commissioner Dave Goetz said.” *** The Tennessean, Nashville, June 18, 2009: Late at night on June 17, “House and Senate budget negotiators agreed to a plan that largely reflects the $29.6 billion proposal outlined by Gov. Phil Bredesen earlier this year, but with less upfront borrowing and a provision that calls on the governor to cut another $55 million if tax receipts fail to reach estimates for the current month, lawmakers said after discussions were wrapped up. . . . The amended budget would add back in $5 million in family support grants for mental health, $4.9 million in grants for school health and $4.5 million more for the Department of Children's Services. . . . But nearly 1,400 jobs would still be eliminated, including 717 workers who would be laid off, mostly in the Department of Mental Health and the Division of Mental Retardation Services.” *** Office of the Governor, June 18, 2009: In his remarks on the end of the legislative session, Governor Bredesen provided “highlights of the 2009-2010 budget that include these administration priorities: (a) protect education by fully funding the Basic Education Program, the State’s funding formula for K-12 education; (b) maintain Bredesen’s commitment to funding voluntary Pre-K with recurring dollars; (c) preserve $157 million in essential capital outlay projects for higher education by utilizing bonds as their funding source to preserve cash; (d) provide an additional $11.6 million for new capital maintenance projects on higher ed campuses; (e) fully fund economic development projects currently underway; . . . (f) provide for development of the Haywood County megasite in West Tennessee, including a five-megawatt 20-acre solar farm to serve as a demonstration tool as part of Bredesen’s Volunteer State Solar Initiative to advance job creation, education, research and renewable-energy production in Tennessee; (g) ramp down spending in the discretionary and non-BEP areas of the budget to achieve a reduction of approximately 12 percent on average at the end of the four-year period; and (h) utilize bonds under a four-year plan to fund bridge replacement and repair.” _________________________________ Bredesen Outlines Budget: “Taxpayers Expect Us To Live Within Our Means, Office of the Governor, May 12, 2008 (revised budget proposal for FY 2008-2009): http://www.tennesseeanytime.org/governor/viewArticleContent.do?id=1222&page=4 *** The 2008-2009 Fiscal Year adopted budget is available at: http://www.knoxcounty.org/finance/budget.php *** Also see the Governor’s Education Priorities: http://www.tennesseeanytime.org/governor/Education.do Tennessee Budget Crunch to Scale Back Added Pre-K Funding, Kingsport Times News, April 23, 2008: http://www.timesnews.net/article.php?id=9006084 Bredesen Announces CoverTN Benefit Improvement for 2009, Office of the Governor, September 30, 2008: http://www.tennesseeanytime.org/governor/viewArticleContent.do?id=1283&page=1 Bredesen Tells Colleges to Prepare for “Real” State Funding Cuts, Commercial Appeal, Memphis, November 25, 2008 http://www.commercialappeal.com/news/2008/nov/25/bredesen-tells-colleges-prepare-real-cuts/ December Revenues, Department of Finance and Administration, released on January 9, 2009: http://www.state.tn.us/finance/newsrel/010909Revenues.shtml Tennessee: Bredesen Warns Budget Cuts Could Require 2,000 Layoffs, Chattanooga Times Free Press, January 15, 2009: http://www.timesfreepress.com/news/2009/jan/15/tennessee-bredesen-warns-budget-cuts-could-require/?local 2009 State of the State Address, Office of the Governor, February 9, 2009: *** Press release:http://www.tennesseeanytime.org/governor/Newsroom.do?id=3 *** Full text of the address:http://www.tennesseeanytime.org/governor/viewArticleContent.do?id=1338&page=0 Bredesen Outlines FY 2009-2010 Budget, of the Governor, March 23, 2009: Press release -- Click at the right for the complete budget address and publications that provide details on the proposed budget: http://www.tennesseeanytime.org/governor/viewArticleContent.do?id=1351&page=0 Tennessee’s website on its uses of and opportunities under the American Recovery and Reinvestment Act funds, launched in March 2009, is at: http://www.staterecovery.org/tennessee March Revenues, Department of Finance and Administration, April 8, 2009: http://www.tn.gov/finance/newsrel/040809MarchRevenues.shtml Unemployment Rate Increases in 74 Counties, Decreases in 19, Department of Workforce and Labor Development, April 23, 2009: http://news.tennesseeanytime.org/node/1332 April Revenues, Department of Finance and Administration, May 7, 2009: http://www.tn.gov/finance/newsrel/AprilRevenues.shtml
Texas: Facing a Challenge After Three Years of Vigorous Growth
Compiled from several sources named in the text and in the links below.
*** Office of the Governor, October 21, 2008: Speaking at a Dallas Regional Chamber luncheon, Governor Rick Perry addressed “the ramifications of both Hurricane Ike and the national economic downturn. . . . He also reiterated the need for State agencies to cut as much discretionary spending from their budgets as possible, a priority he will carry through the upcoming legislative session. Last week, Gov. Perry issued this directive in a letter to all State agency leaders. They are expected to report how they plan to specifically address the governor’s request the week of Oct. 27. . . . The Financial Times recently named Texas the number one State economy in the nation in light of the ongoing economic and financial slowdown. States’ positions were based on a ranking of four separate economic indicators: employment growth rate, state product growth rate, personal income growth rate, and home foreclosure rate.” *** Texas Comptroller of Public Accounts, January 12, 2009: In submitting the January 2009 Biennial Revenue Estimate for the 2010-2011 Biennium, the Texas Comptroller of Public Accounts stated that “for 2010-2011 the State can expect to have $77.1 billion in funds available for general-purpose spending. This represents a 10.5 percent decrease from the corresponding amount available for 2008-2009. . . . This estimate is based on my new economic forecast which indicates that, after recording three years of vigorous economic activity, the Texas economy is now facing a serious challenge. . . . Texas is forecasted to lose 111,000 jobs during fiscal 2009. Also in 2009, the annual growth rate in real GSP is expected to drop down to 1.8 percent and then rise slightly to 1.9 percent in fiscal 2010, before jumping to 3.8 percent in fiscal 2011.” *** Austin American-Statesman, January 25, 2009: “House and Senate budget writers last week released budget proposals that would put about $2 billion more into public education but, otherwise, mostly stick with current state services. Their proposals, they said, will cost the state about $3.7 billion more in general revenue than it is expected to take in over the next two budget years, 2010 and 2011. Fortunately, the State also is expected to have about $9.1 billion in its "rainy day" fund that can be used to cover that gap. But closing that gap only maintains current services, so there will be pressure to dip deeper into the fund.” *** Office of the Governor, January 27, 2009: In his State of the State address, Governor Perry stated that “from November 2007 to November 2008, roughly 70% of the jobs created in the U.S. were in Texas. . . . . As we celebrate our relative strength and welcome these new jobs to Texas, we cannot lose sight of the global financial situation and what it may mean for us in the months to come. As we wrestle with lowered revenue estimates, we must stay committed to the proven policies that have brought us so far, and resist any calls to panic. . . (With reference to education, the Governor said) to reach our goal of ensuring every student graduates from Texas high schools with a strong foundation in math, science and English, we owe them three things. First, they deserve the best teachers. . . . That is why we worked so hard to create the largest teacher incentive pay program in the country, one that will pay out more than $147 million to teachers and staff by the end of this school year. This is a program we must continue. Second, we must hold our schools accountable for student performance. . . . Third, let’s keep improving our math and science education, and continue preparing our young people, especially low-income and minority students, for a productive life after high school. Since we first created the Texas High School Project to improve graduation rates of disadvantaged students, this program has created 32 academies that focus on science, math and technology, along with several early college high schools on community college campuses, whose best practices are being shared across the state. . . . (Another) approach is to update our laws and regulations to help schools benefit from evolving educational technologies. . . . .I propose increased funding for the Texas Grant Program. . . . I like this approach because it not only knocks down a barrier between hard working students and the success they desire, it also keeps our college classrooms supplied with students who are motivated and prepared to succeed. I also propose freezing a student’s college tuition rates for four years at the level they pay as an entering freshman. . . . We should (also) significantly increase our investment in community colleges.” The Governor described various other initiatives, such as border security and “increasing our affordable supplies of traditional energy sources, as well as wind, solar, bio-fuels, and nuclear, as a way to bolster our economy and move us closer to energy independence.” *** Office of the Governor, January 27, 2009: Governor Perry submitted his State budget and priorities for fiscal years 2010 and 2011 on January 27, “telling lawmakers he is adopting the budget proposed by the Legislative Budget Board as a starting point to meet the state’s needs for the next two years.” The budget covers economic development; education; health and fitness; infrastructure; public safety and security. In EDUCATION and higher education, the Governor proposed for the biennium (a) $97 million for the Texas High School Project; (b) $622.5 million to expand and continue the District Award for Teacher Excellence and Texas Educator Excellence Grant programs; (c) reallocating $645.7 million of special item and excellence funding to increase student financial aid and support other higher education priorities; (d) transferring responsibility for developmental education from four-year institutions to community colleges; (e) increasing student financial aid by an additional $110 million for the Texas Grant Program; (f) tripling financial aid funding for community colleges by increasing the Texas Educational Opportunity Grant from $14 million in 2008-09 to $42 million in 2010-11; (g) $168.9 million increase for higher education incentive funding; (h) $10 million for the hospital-based nursing education program. In HEALTH AND FITNESS, the budget includes $10 million for an incentives-based health and fitness pilot program for middle and high school students for the 2010-11 biennium. *** Office of the Governor, March 13, 2009: In a news release, Governor Perry stated that “on Thursday afternoon, after thoughtful and thorough review of the federal stimulus legislation, I stood up for Texas employers and the millions of Texans they employ to express my resistance toward further government intrusion into their lives by opposing the federal government’s push to expand our State’s unemployment insurance program.” (NOTE: This refers to a provision of the American Recovery and Reinvestment Act.) *** Houston Chronicle, May 30, 2009: “The Texas budget is on its way to the governor’s desk. . . . With just three days left in the 81st Texas Legislature, the only thing certain was the State’s $182.3 billion (two-year) budget, which, among other things, increases spending for the mentally disabled, correctional officer salaries, college financial aid and pre-kindergarten programs. Most of the money, which includes $12.1 billion in federal economic stimulus dollars, is dedicated to education and health care.” This article shows $75.4 billion for Education; $59.6 billion for Health and Human Services; and notable increases for community care for the mentally disabled (+$464.5 million). *** Office of the Governor, June 2, 2009: In this speech, Governor Perry said, among other things, that “our legislators have passed legislation I requested that will strengthen our economy, improve education and make Texans safer. . . . I am pleased that legislators renewed funding for the Texas High School Project, which supports math and science initiatives for low-income students through the State’s 32 math and science academies, and high schools on college campuses. We also increased funding for the nation’s largest teacher merit pay program by more than $50 million, making $394 million available to award teachers who improve student achievement and teach on hard-to-staff campuses and subjects. On higher education, we increased financial aid for the TEXAS Grant program by $186.4 million, and increased grants for community college students by $10 million: a 40% increase in funding for those essential programs. . . . At the same time, we made inroads in greater accountability in higher education by mandating transparency for educators, which enables students to make informed choices on the best classes and teachers to advance their education. Adjustments to the Ten Percent Rule will empower educators to choose from a broader pool of students, allowing them to consider intangibles like leadership, which will keep even more strong students in Texas colleges and universities. . . . In addition, we fought off attempts to raise taxes.” *** Office of the Governor, June 16, 2009: The Governor distributed a news release from Directorship Magazine that states, “The Lone Star state tops our first annual Boardroom Guide to the Best States for Business. . . What puts Texas first? It has a pro-business tax climate that ranks third, a low cost of living, a relatively solid economy, and a litigation environment that ranks 10th on our list. Texas also ranks first in the number of Fortune 500 companies located there.” *** Dallas Morning News, July 2, 2009: “On the last day to do so, Gov. Rick Perry formally applied Wednesday for $4 billion in federal stimulus money to fill gaps and boost State education needs. In total, Texas is in line to receive about $16 billion in federal money over the next year that Perry and other Republican governors have criticized as Washington-style free spending. . . . State lawmakers already have counted the federal, one-time education money in the budget Perry signed last month. . . . The federal infusion helps give school districts about a 2 percent increase in funding. And lawmakers mandated that half of the new money go toward an $800 across-the-board teacher pay raise.” _________________________________ Gov. Perry Reiterates Need to Cut Discretionary State Spending, Office of the Governor, October 21, 2008: http://governor.state.tx.us/news/press-release/11449/ Biennial Revenue Estimate, Texas Comptroller of Public Accounts, January 12, 2009: http://www.window.state.tx.us/taxbud/bre2010/ Tight Budget in Texas Means Sacrifices, Austin American-Statesman, January 25, 2009: http://www.statesman.com/opinion/content/editorial/stories/01/25/0125budget_edit.html State of the State, Office of the Governor, January 27, 2009: http://governor.state.tx.us/sots2009 Governor’s Budget, 2010-2011, Office of the Governor, January 27, 2009: http://governor.state.tx.us/files/press-office/Governors_Budget_2010-11.pdf Window on State Government -- Tracking the Texas Stimulus page, established in March 2009: http://window.state.tx.us/recovery/ Expanded Unemployment Program Would Hurt Texas Employers and Their Employees, Office of the Governor, March 13, 2009: http://governor.state.tx.us/news/editorial/12095/
Utah: Declining Economic Indicators Compiled from several sources named in the text and in the links below.
*** Office of the Governor, September 23, 2008: “Utah Governor Jon Huntsman issued a call of the Utah State Legislature to begin a special session beginning Thursday, September 25 to address budget shortfalls from original projections. The Revenue Estimates Committee, consisting of representatives from the Executive and Legislative branches, met on September 23 to determine revised Fiscal Year 2009 revenue projections, decreasing it by $272.4 million. . . . Governor Huntsman, House Speaker Greg Curtis and Senate President John Valentine have agreed to hold public education harmless in the budget reconsiderations during the special session.” (On October 15, the Governor signed Senate Bill: HB 2001, Current Fiscal Year Budget Adjustments.) *** Office of the Governor, December 5, 2008: In announcing his FY 2010 budget recommendations, Governor Huntsman’s statement said that “Utah has not been immune to the deterioration of the national economy as shown by many of the key economic indicators that have been dramatically revised downward for both FY 2009 and FY 2010. This has negatively impacted the State revenues, and reductions in spending have been necessary. In September, Governor Huntsman called the Legislature into a special session to balance the FY 2009 budget. Since then, economic indicators have continued to decline, and subsequently this year’s budget includes further reductions and recommends funding increases only in the most critical areas, including public education enrollment growth and caseload growth in vital human services. . . . His budget holds the realized decrease in public education’s budget to less than four percent. This reduction comes with a strong recommendation that classrooms are protected during this downturn and that children will continue to receive the best education possible. The education budget also includes $62.6 million to fund the projected student enrollment growth of approximately 13,500 children in FY 2010.” *** Office of the Governor, January 27, 2009: In his State of the State Address, Governor Huntsman said. “Let's begin this session by passing the task force legislation shepherded by Speaker David Clark and Senator Sheldon Killpack to develop a truly affordable insurance policy. But this is not enough. We must connect all people to the healthcare they need.! . . . Early childhood learning is critical for their long-term success, quality of life and our State's competitive edge in attracting world-class jobs. Early results indicate kindergarten students are six times better prepared for a successful first grade experience if they attended full-day kindergarten. . . . We are leading the nation in educating our kids in 21st century languages like Chinese and Arabic. . . . Yet, our kids' literacy in these critical foreign languages must be matched by their mastery of numbers, an area that is in need of strengthening. . . . I have asked both public and higher ed to make this year the ‘Year of Math.’ . . . And there are two goals that we should immediately set our sights on. First, just as Wall Street is known for finance and Silicon Valley for technology, by 2012, I believe Utah can become the premier destination in America for renewable energy! (Many more details are included.). . . . Our second goal will be to designate Interstate 15 from Idaho to Arizona as a natural gas corridor.” The Governor also discussed other initiatives, such a Commission on Strengthening Utah’s Democracy and closing the gap on the uninsured.” *** Politics West/Denver Post, February 2, 2009: “The Legislature has approved a bill slashing nearly every State agency's budget by about 3.8 percent. Lawmakers rushed to cut the 2009 budget Monday as the State suffers from declining revenues caused by a global economic crisis.” *** Fox 13, Salt Lake City, February 17, 2009: “Revenue estimates released Tuesday (February 17) show that even after making about $400 million in cuts so far this year, State revenues will be $171 million less than originally projected for the current fiscal year and down $320 million for the fiscal year that begins July 1.” *** Deseret News, Salt Lake City, February 18, 2009: “Top GOP lawmakers said Tuesday they will use Utah's share of the federal stimulus package to balance both the fiscal year 2009 budget and the 2010 budget. . . . It will be up to the House and Senate Republican caucuses to decide exactly how both the current and upcoming year budgets will be balanced. And the caucuses took up that task Tuesday (February 17).” *** Utah Legislature, March 12, 2009: The Appropriation Summary and Budget Highlights (a report of the Utah Legislature) states that “legislators resolved an unprecedented $1 billion revenue shortfall over the course of an extended legislative session that began in September 2008. . . . While appropriators used one-time federal funds from the American Recovery and Reinvestment Act of 2009 (ARRA) to soften the impact of State revenue declines, they also kept the State budget structurally balanced -- giving State agencies one year to adjust to lower resource levels. Legislators preserved the State’s two rainy day funds . . . and did not touch a $100 million set-aside for future education growth. The fiscal 2010 State budget declined from anticipated levels by around 9% on average. PUBLIC EDUCATION -- which represents nearly half of State tax funding -- declined by only 5.2 percent. . . . Legislators made ongoing reductions in the public education budget for FY 2009 and 2010 and partially mitigated these reductions with one-time monies. The total State-funded budget in FY 2010 is over $2.2 billion. . . . A few of the major funding initiatives include (a) Student enrollment growth ($53.2 million) -- Funds the impact of new students in the Basic School Program, Charter School Local Replacement and Administrated Costs, and the Voted & Board Leeway Programs; (b) Elimination of program funding ($102 million) -- Includes Career & Technology Education District Set-Aside, Local Discretionary Block Grant, and Quality Teaching Block Grant; (c) Reduction in funding for special programs ($10 million) -- Approximate 10% reduction to programs for at-risk students, accelerated students, adult education, concurrent enrollment, and approximate 20% reduction to the interventions for the Student Success Block Grant; (d) Utah State Office of Education ($5.4 million) -- Reduction of approximately 20 FTE, professional development opportunities for USOE staff and districts/charter staff, and assessment expenditures. Other items in the Education budget address the Social Security and Retirement Program; Capital Outlay Foundation Program; Utah Schools for the Deaf and Blind; Fine Arts Outreach; Science Outreach; and USOE initiative programs. . . . HIGHER EDUCATION budgets declined by just under 9%. . .To help institutions get through FY 2010 with a lower ongoing budget, the Legislature approved a total of $67,490,300 in one-time funds.” The Appropriations Summary also provides details on budgets for Executive Offices and Criminal Justice; Capital Facilities and Government Operations; Commerce and Workforce Services; Economic Development and Revenue/Community & Culture; Department of Health; Department of Human Services; Natural Resources; Transportation, Environmental Quality, and National Guard.” (The Governor subsequently signed the budgets.) *** Center for Public Policy and Administration, University of Utah, March 25, 2009: In this review of the process that resulted in Utah’s FY 2010 budget and FY 2009 adjusted budget, the Center states that “a principle reason for Utah’s best-of-class triple-A bond rating, its nation-leading ‘A’ grade from Governing Magazine, and its two consecutive years as ‘#1 economically competitive State” is our Legislature’s prudent approach to budgeting. . . . Working with the Governor, Utah lawmakers balanced the State’s budget, prepared for short-term economic challenges, and planned for future long-term growth. Legislators resolved unprecedented revenue shortfalls over the course of extended legislative sessions that began in September 2008. They ultimately closed a nearly $1 billion budget gap with a combination of General/Education Fund budget reductions ($470 million), revenue enhancement ($70 million), federal assistance ($390 million), and one-time fund balances. For FY 2010, lawmakers reduced State spending by about 9 percent on average. They held cuts in public education to 5.2 percent and higher education to just under 9 percent. Other areas of state government averaged 14% declines. . . . Utah legislators used flexible one-time ARRA funds to minimize cuts for FY 2010 that, at one point, were targeted at 15 percent overall. An additional $1 billion in structured federal assistance will flow to Utah, benefiting highway and transit projects, low income school children, special education programs, and unemployed workers, among others. . . . Legislators took advantage of Utah's pristine credit rating to invest in infrastructure and create jobs. Over the next few years, Utah will bond for nearly $5.2 billion in roads and highways – $2.2 billion of that having been authorized in the 2009 General Session. The state will also borrow to build $115 million in new facilities, almost all of which will be on higher education campuses.” *** Utah Department of Workforce Services, April 16, 2009: “Utah’s nonfarm wage and salaried job count for March 2009, as generated by the United States Bureau of Labor Statistics, contracted by 2.6 percent. Approximately 32,800 jobs have been removed from the Utah economy over the past year, lowering total wage and salary employment to 1,220,300. Utah’s other primary indicator of current labor market conditions, the seasonally adjusted unemployment rate, continued to rise, increasing to 5.2 percent in March. . . . Utah’s February 2009 unemployment rate was 5.1 percent. . . . Last March (2008), the State’s rate was 3.3 percent; there is a 1.9 percentage-point increase over the past 12 months. Approximately 71,700 Utahns were considered unemployed in March 2009, compared against 45,800 last March, an increase of 25,900 unemployed workers. . . .United States unemployment rate continued to rise, reaching 8.5 percent for March 2009.” NOTE: On May 16, President Obama nominated Governor Jon Huntsman to become U.S. Ambassador to China. The Governor is a speaker of Mandarin Chinese. If confirmed, Huntsman will be succeeded by Lt. Governor Gary Herbert. *** Utah State Tax Commission, May 18, 2009: The Tax Commission’s report for ten months of FY 2008-09 shows that, as of May 7, 2009, actual growth FY 2009 stands at 9.2% below FY 2008 actual growth. FY 2009 projected growth is 8.5% below FY 2008 final growth. *** Salt Lake City Tribune, June 3, 2009: “In all, Utah schools will receive $49.5 million in Title 1 stimulus money, which, unlike other education stimulus money, will go specifically toward Title 1 schools, which draw federal dollars for serving students from low-income families. Some districts, such as Granite, say they will use the extra money to expand after-school and summer programs at Title 1 schools such as Monroe. Other districts will use the money to hire more teachers. At least one district is hoping to create a performance-pay program for teachers in Title 1 schools.… Utah educators are excited about the funding, which represents a nearly 78 percent boost over what Utah would typically get from the federal government for its 243 Title 1 schools.” *** Utah Department of Workforce Services, June 18, 2009: “Approximately 41,800 jobs have been removed from the Utah economy over the past year, lowering total wage and salary employment to 1,214,900. .. . . The seasonally adjusted unemployment rate rose slightly to 5.4 percent in May. Last May, the State’s rate was 3.3 percent. . . . Approximately 74,800 Utahns were considered unemployed in May 2009, compared against 45,400 last May, an increase of 29,400 unemployed workers. . . . The U.S. unemployment rate continued to rise, reaching 9.4 percent in May.” _________________________________ Special Session Call, Office of the Governor, September 23, 2008: http://www.utah.gov/governor/news_media/article.html?article=1999 Governor Huntsman Releases His FY 2010 Budget, Office of the Governor, December 5, 2008 (Overview, recommendations, summary, and budget letter): http://www.utah.gov/governor/news_media/article.html?article=2180 Governor Huntsman’s 2009 State of the State Address, Office of the Governor, January 27, 2009: http://www.utah.gov/governor/news_media/article.html?article=2301 Utah Legislature Approves 2009 Budget Cuts, Politics West/ Denver Post, February 2, 2009: http://www.politicswest.com/35411/utah_legislature_approves_2009_budget_cuts Lawmakers To Cut Another $320 Million From Budget, Fox 13, Salt Lake City, February 17, 2009: http://www.fox13now.com/news/kstu-lawmakers-to-cut-another-320-million,0,5224885.story Utah’s Budget to Get a Bailout, Deseret News, Salt Lake City, February 18, 2009: http://www.deseretnews.com/article/1,5143,705285665,00.html?pg=1 Utah's online source on American Recovery and Reinvestment Act of 2009 and follow how recovery funds are spent in the State was launched in March 2009: http://www.recovery.utah.gov/ State Budget Overview -- Appropriation Summary & Budget Highlights, Utah Legislature, March 12, 2009: http://www.le.state.ut.us/lfa/appropriationssummary2009.pdf Balancing Utah’s Budget in Tough Financial Times, Center for Public Policy and Administration, University of Utah, March 25, 2009: http://www.imakenews.com/cppa/e_article001382933.cfm Utah’s Unemployment Situation: March 2009, Utah Department of Workforce Services, April 16, 2009 http://jobs.utah.gov/opencms/wi/pubs/une/
Vermont: Reductions in FY 2009 Budget and Struggles Over FY 2010
*** Office of the Governor, April 12, 2008: “The Douglas administration Friday notified State managers that effective immediately all out-of-state travel requiring overnight stays must be approved by the Secretary of Administration. This authority had previously been delegated to most agency and department heads. ‘Our ultimate goal is to reduce out-of-state travel by at least 25 percent between now and July 1, 2009. We expect this to save nearly $1 million dollars,’ said Secretary of Administration Michael Smith.” *** Legislative Joint Fiscal Committee, November 18, 2008: In its November 2008 quarterly report, the Committee found that “expectations for total State revenues for FY09 and FY10 have been reduced by nearly $125 million, with one-third of that in FY09 (-$41 million or approximately 2.7% of total revenues) -- and the remaining two-thirds in FY10 (-$83 million or about 5.3% of total revenues). Most of the losses will occur in the General Fund, with much of the decline concentrated in personal income tax receipts and consumption taxes (sales and use, motor vehicle purchase and use, and meals and rooms). *** Office of the Governor, December 12, 2008: “Over the last three weeks, members of the administration and legislative leaders have been engaged in in-depth discussions about how the State achieves a cost savings to meet the expected budget gap for the fiscal year 2009. . . . Secretary of Administration Neale F. Lunderville announced today that the proposed budget rescission list will be released in full on Monday morning (December 15) at 10:00 AM.” Links to the rescission list are included in this announcement. *** WPTZ-5 News, Burlington, December 19, 2008: “The Legislature's Joint Fiscal Committee gave the OK for nearly $20 million in budget cuts Friday at the State House. The lawmakers, for the most part, left Gov. Jim Douglas' budget rescission proposal unchanged. They eased cuts to mental health and developmental disabilities agencies, postponed the implementation of a child-care eligibility change, and eased a reduction to a micro-business lending program. To compensate for protecting some programs, lawmakers are taking a total of $1.8 million in funds from other programs, including the Next Generation Scholarships, and the VHFA energy loan program.” *** Office of the Governor, January 8, 2009: “In his fourth Inaugural Address, Governor Douglas said, among other things, “We have already trimmed $43 million from our current year budget and, in the coming weeks, the legislature will consider an additional $46 million in rescissions. When the State’s economists meet next week, we could again see revenues decline, further requiring cuts to balance our budget. And our challenges don’t stop there; in fiscal 2010 we expect to have a shortfall of more than $150 million. . . . The recent downgrades in our revenue forecasts and the bleak outlook for the coming fiscal year have shone a bright light on the imbalance we now find among different functions of government. The best examples can be found in two areas -- general education and Medicaid. . . . Our current education funding system is failing taxpayers and local voters. For over a decade, Vermonters in every corner of the State have borne the heavy burden of rising property taxes under Act 60. It is wrong for one-third of all tax dollars to be spent on a system that only a handful can explain. . . . I ask the Legislature to work with me to establish a collaborative process for fresh ideas -- bringing together thoughtful individuals with a broad range of perspectives to design an educational funding system that is simple, transparent, and sustainable. We must also be prepared to examine school consolidation, governance, special education costs, and other opportunities to achieve efficiencies. . . . . In order to create a funding bridge until a new system is established, I propose a common-sense measure to freeze per-pupil spending for schools and categorical grants at current levels. . . . Further, we will strengthen local control by holding school districts directly responsible for tax increases. . . . I also propose we end property tax subsidies for Vermonters making over $75,000. . . . While the education fund will have grown 23% since 2006, the general fund will have actually decreased 2%. . . . I propose placing the obligation for funding the teachers’ retirement system where it belongs -- in the education fund. . . . I also propose linking the general fund transfer to the education fund to changes in the level of general government spending.” The Governor’s address also promotes a 20% increase in spending for early care and education and for higher education. *** Legislative Joint Fiscal Committee, January 13, 2009: In its January 2009 quarterly report, this Committee stated that “this forecast recommends substantial negative adjustments to aggregate FY10 and FY11 revenues of about $45 million each.” *** Office of the Governor, January 22, 2009: In his Budget Address, the Governor included an overview of the current budget shortfall of $49 million and stated that “although meeting our fiscal 2009 obligations has been difficult, the challenges we face for fiscal 2010 are even greater. . . . We must address a gap of over $200 million, roughly 18% of available fiscal 2010 revenues. . .. Bringing educational spending in line with other important aspects of government is the first step toward a more equitable budget. . . . In fiscal 2010 there is just $734 million available in the general fund for spending outside of K-12 education. . . . That is why I propose paying the employer’s portion of teachers’ retirement from the education fund. .. . This allows Vermont to leverage an additional $57 million in federally matched Global Commitment funds for a total of $97 million in Medicaid programs. . . . I also propose linking Education Fund transfer to changes in the level of General Fund spending. By taking this step, we will free at least $23 million that can be used to make necessary investments in early education and higher education” The Governor also discussed health care premiums, Medicaid, other aspects of the human services budget, reductions in force in State agencies, evaluation of State grants to non-profit providers, investments in transportation and economic growth, *** Office of the Governor, February 4, 2009: “Governor Jim Douglas today announced the formation of a five-member task force to examine the Vermont State Colleges and University of Vermont systems to determine what academic and administrative efficiencies could be achieved through their consolidation. The Governor announced in his recent inaugural message that he was recommending a 20% increase in the appropriations for both early childhood education and higher education. The Governor also announced that he would appoint a ‘working task force’ to undertake a review of the structure, administration and program offerings of Vermont’s two public higher education systems.” *** Fox News 44, Colchester, March 19, 2009: “Part of the massive federal stimulus package will be headed to Vermont early education programs. $600,000 will be going to Head Start, bringing the programs total funding to more than 14 million dollars. . . . With the new money, the program’s eligibility will change, meaning more families will qualify. The funds will also go towards raising the salaries of teachers. *** Office of the Governor, March 30, 2009: “Governor Douglas announced today a supplemental education funding plan for FY2010 and FY2011 that will make use of the American Recovery and Reinvestment Act (ARRA) funds to hold down property taxes, reform the Education Fund and help bring sustainability to the General Fund without the need for costly tax increases proposed by the Legislature. . . . His revised plan continues to call for a 2 cent rate cut to statewide property taxes; a $75,000 cap on income sensitivity; moving the employer’s share of teachers’ retirement to the Education Fund; and lowering the cap on property tax adjustments to $6,000 – an idea currently under legislative consideration. The Governor also proposes that the 81.8 percent of the State Fiscal Stabilization Fund (SFSF) is used to offset the impact on property taxes as the State transitions to a sustainable education finance model. In addition, for FY 2011 the Governor proposes level funding per pupil spending and categorical grants at FY2010 levels and using the remainder of the SFSF to support the Education Fund. n January, Governor Douglas put forth a plan to make State government sustainable not just for the coming year but for the future. Doing so requires that all areas of State government share in the sacrifice so that no one area of government, service or group is forced to bear the entire burden of declining state revenues. Level funding for K-12 education is an essential aspect of his budget plan.” *** Office of the Governor, April 1, 2009: “Governor Douglas today announced that the Department of Health and Human Services has released more than $2.7 million in American Recovery and Reinvestment Act funds to support expanded services at eight community health centers across Vermont.” The announcement includes the list of Health Centers receiving funds and their amounts. *** Legislative Joint Fiscal Committee, April 24, 2009: In its April 2009 Economic Review and Fiscal Forecast, the Committee found that “State revenue collections have been further downgraded in both FY09 and especially FY10. Including about $9 million in State revenue reductions associated with the ARRA in FY10, total FY10 revenues are now expected to be more than $50 million below prior January estimates.” *** Office of the Governor, May 11, 2009: “Governor Jim Douglas today announced that the Vermont Department of Labor has received $2.9 million dollars in ARRA funds to provide skill training, work experience and summer employment to eligible youth 14-24 years old. These funds are part of the Workforce Investment Act that the Department administers. The Department of Labor announced more than 15 grants to schools, businesses and nonprofits around the State who will be working with Vermont’s young people to help them learn much needed skills. Funds are targeted to providing opportunities for at risk youth, out of school youth and low income youth. *** Addison County Independent, May 14, 2009: “The Legislature ended the session on Saturday after passing a $4.5 billion budget for fiscal year 2010 that featured a $281 million revenue shortfall. Lawmakers ‘patched’ that hole by cutting $59.3 million from State programs and services, while hoping to collect $4.8 million in unpaid taxes; generating $21.3 in new taxes; reducing the general fund transfers to the Vermont’s education fund by $18.4 million; using $3.2 million in ‘rainy day funds’; and applying $174.5 million in federal stimulus funds. Gov. James Douglas, a Middlebury Republican, has served notice he does not support the General Assembly’s budget, primarily due to the increase in taxes it requires.” The article includes dollar details on major budget provisions. *** Addison County Independent, May 21, 2009: “Gov. James Douglas on Tuesday released his own proposed fiscal year 2010 State budget to counter the $4.5 billion spending plan he vowed last week to veto, but it appears as though the counter-proposal will not avert a legislative override vote slated for June 2. The Middlebury Republican’s plan recommends further cuts, account transfers and raising $13 million in new revenues — roughly half the amount the General Assembly had endorsed to help bridge what had been a looming $281 million shortfall. . . . Douglas’s proposal, among other things: (a) generates $13.44 million in new revenues (including tobacco and liquor tax increases); . . . (b) makes what Administration Secretary Neale Lunderville said is another $32 million in cuts in human services and other sectors beyond what the Legislature approved; . . . (c) proposes that households earning more than $75,000 annually will not receive any property tax break for education expenses; . . . (d) gives a middle-class tax cut through capital gains tax changes to Vermonters in the form of lower income tax rates; it also restores the ‘sales tax holiday’; . . . (e) restores several of Douglas’s priority programs that hadn’t made it into the Legislature’s version of the budget, including a ‘Next Generation’ scholarship program and various economic development initiatives.” *** Office of the Governor, May 26, 2009: “Governor Jim Douglas today announced that Vermont was chosen to participate in Transforming Care for Dual Eligibles, a national initiative that will test innovative models for people who are dually eligible for Medicare and Medicaid (‘dual eligibles’). Vermont will join six states in developing and implementing strategies to improve care and control costs for dual eligibles, a high-need population with individual health care costs nearly five times those of other Medicare beneficiaries. The program is designed by the Center for Health Care Strategies and supported by The Commonwealth Fund.” *** Office of the Governor, June 1, 2009: Governor Douglas issued a statement saying that “It is with great disappointment that I return H. 441 to the Legislature without my signature. I had hoped that our budget differences could be resolved and compromise reached without the need for a veto vote. Unfortunately, an agreement could not be achieved . . . In a few short months my Administration will begin work on the fiscal 2011 budget and by this time next year, legislators will have again cast their votes on a spending plan. According to the Legislature’s Joint Fiscal Office (JFO), H.441 will leave a $67 million General Fund deficit that must be addressed at that time. Further, JFO estimates an even greater $141 million deficit for fiscal 2012 – when federal stimulus dollars will no longer be available to help fill the hole. Together, the fiscal 2011 and fiscal 2012 deficits account for a staggering $208 million shortfall if H.441 becomes law.” *** Burlington Free Press, June 2, 2009: “The State budget has passed with the governor's veto officially overridden, but lawmakers will return Wednesday (June 3) to make changes to the so-called ‘companion bill.’ House Majority Leader Floyd Nease (D-Johnson) said wrinkles in the bill -- which makes changes to the budget bill that were presented last week -- still need to be ironed out.” *** Vermont Business Magazine, Burlington, June 4, 2009: “The Vermont Legislature returned to work Wednesday before finally adjourning the special session by passing a number of changes notably identified by Governor Douglas as problematic. While not addressing the governor’s concerns over total spending and tax levels, the Legislature did agree to others, in particular with the impending deficit in the Unemployment Insurance Trust Fund and the timing of when the increase in the Capital Gains tax would begin.” This article summarizes provisions of the State Budget Companion Bill (N 442). _________________________________ Douglas Administration to Reduce State Employee Travel -- Limits Will Save About $1 Million, Office of the Governor, April 12, 2008: http://governor.vermont.gov/tools/index.php?topic=GovPressReleases&id=2906&v=Article
Virginia: Continuing Reductions Compiled from various sources named in the text and in the links below.
*** Virginia Department of Planning and Budget, October 9, 2008: “Statewide, the general fund reductions and revenue enhancements included in the Governor’s plan equal $279 million, or just over 7.5 percent of the general fund available for reduction ($191.2 million are ongoing savings actions). The reductions in this plan (for the remainder of FY 2009) impact approximately 100 agencies and result in the elimination of 1,406 positions, which includes approximately 567 layoffs of current employees.” . . . Provisions for the Virginia Department of Education Central Office include: (a) eliminate funding for the Civics Education Commission; (b) layoff eleven general fund positions in the agency effective with the November 10, 2008, pay period; (c) reduce funding for the Partnership for Achieving Successful Schools (PASS) Business Partnership and supplant funding for PASS intensive school improvement with federal sources; (d) reduce administrative funding by 50 percent for Governor’s Schools, foreign language academies, and Standards of Learning (assessment) revisions process (reduction in administrative functions, not grants to school divisions); (e) supplant funding for academic reviews with federal sources; (f) reduce funds for FY 2009 VITA comprehensive services bill; (g) supplant Educational Information Management System with federal sources; (h) supplant funding for Schools for Students with Disabilities with federal sources for funding of two positions; (i) reduce funding for wage positions by eliminating positions, reducing hours, or using federal funds; (j) transfer four general fund position to general funds; (k) eliminate 12 vacant Education Specialist general fund positions in the agency; (l) Supplement administrative funding for the Virginia Teacher Corps with federal sources for program oversight and targeted training grants. In addition, “Institutions of higher education will implement strategies to capture savings through administrative streamlining, implementing program efficiencies and realignment. When identifying areas of savings, consideration will be given to preserving the core mission of the institution to ensure the delivery of quality instruction and student services.” The plan also includes the Virginia Rehabilitation Center for the Blind and Vision Impaired; Department of Health; Department of Medical Assistance Services; Virginia Board for People with Disabilities; Department for the Blind and Vision Impaired; Department of Social Services; Health and Human Services; and other agencies/departments. . . . The Governor will release his recommended reduction strategies for .FY 2010 in conjunction with the release of his amendments to the 2008-2010 biennial budget on December 17, 2008. *** Channel 8 News, Richmond, October 9, 2008: Channel 8 News reported that “Kaine largely spared cuts to State support for public schools from kindergarten through 12th grade for this year. He deferred them for a year because of the difficulty local school districts would have absorbing an unexpected drop in State funding in the midst of an academic year. Things that we left untouched in '09, I need to point out, will definitely be examined and are not going to be untouched in 2010, Kaine said.” *** Richmond Times-Dispatch, December 5, 2008: “Facing the prospect of cutting an additional $1 billion to $1.5 billion from the State's two-year budget, Gov. Timothy M. Kaine said yesterday that the next round of cuts will include layoffs and reductions in funding for K-12 education. . . . The governor did not offer a number on how many jobs would be cut in addition to the 567 workers already laid off. Virginia's budget shortfall for fiscal 2009-2010 could reach as high as $3.5 billion, according to some official estimates.” *** Washington Post, December 18, 2008: Governor Kaine offered his budget amendments to the House and Senate fiscal committees on December 17. “He proposed doubling the tax on tobacco. . . . He wants to offer early release to some prisoners doing time for nonviolent offenses in a State that trails only Texas in executions. And he has suggested taking steps to end Virginia's long history of housing the severely mentally ill in institutions. (Kaine said he wants to direct more resources to community-based programs, which mental health advocates say are underused in the State). . . . State agencies, including colleges, would face 15 percent cuts. He proposed a $400 million cut to education funding and a $400 million cut to Medicaid. . . . About 1,100 workers from agencies across the State, primarily in health and public safety, would be laid off in the next two years. . . . Wednesday's round of proposed cuts was the fourth in a little more than a year and, by far, the most severe. Almost $2 billion has been trimmed in the past year. Kaine proposed using $490 million from the State's rainy day fund, the largest withdrawal in its history and the second withdrawal in a row. Last year, the State borrowed more than $300 million from the fund.” *** Office of the Governor, January 14, 2009: In his State of the Commonwealth address on January 14, Governor Timothy M. Kaine said, “In the spring of 2007, when we first recognized the signs of an economic slowdown, I gave agencies a directive to save money and we have been in a continuous period of intense budgetary review ever since that time. Our early and active approach to this downturn has put Virginia in a better position than many States. Over the last year and a half, we have found savings in every area of State government—streamlining services, consolidating administrative functions, renegotiating contracts, freezing hiring, merging agencies, and laying off workers. I have reduced my own salary, cut the executive office budget, and left nearly a third of executive at-will positions unfilled. . . . (For the new budget), instead of across-the-board cuts, I've proposed targeted, performance-based cuts. We have looked closely at each agency, asking hard questions about the priority of each expenditure and seeking data about outcomes. This approach has enabled us to find the savings that have the least impact on essential services. . . . I decided that nothing in our schools was as important to the students as their teachers and principals, and so I have made a proposal that protects our core priority—the classroom. . . . I proposed a smaller cut to higher education in the 2009 academic year than to other agencies, and asked our colleges and universities not to make any mid-year increases to tuition. In 2010, the cuts are deeper, but my budget proposes a lesser cut for community colleges—the most affordable point of entry into Virginia’s higher education system. And, I propose $26 million in additional support for need-based financial aid so that middle and lower-income students will not find the doors of educational opportunity shut to them.” *** News Channel 8, Arlington VA, January 28, 2009: “Governor Tim Kaine said the $4 billion Virginia expects from the federal stimulus package won't undo cuts already made to the State's troubled budget. Kaine huddled with House and Senate money committee leaders Wednesday afternoon to discuss handling Virginia's share of the $825 billion package Congress is considering. But in interviews Wednesday, Kaine said the federal money doesn't mean the layoffs, curbed services, and agency cuts will be restored.” *** Washington Post, February 17, 2009: “Governor Timothy M. Kaine said Monday (February 16) that Virginia's budget shortfall has grown more than 25 percent since December, bringing the gap between revenue and spending to more than $3.7 billion over two years (through June 2010).” *** Washington Post, March 1, 2009: “The Virginia General Assembly adjourned its regular session Saturday night (February 28) after approving revisions to a two-year, $77 billion spending plan that includes cuts to education, law enforcement and health care. The budget uses $1.5 billion in federal stimulus money to help offset a $3.7 billion shortfall, but deep cuts will hit an array of programs and services as Virginia faces one of its worst financial crises of modern times. . . . Lawmakers used federal stimulus money to restore millions of dollars in cuts to state-funded hospitals and nursing homes and pay $7.5 million for 400 waivers to treat mentally disabled patients at home instead of in institutions. They also agreed to use $345 million of that money for elementary and secondary education and $127 million for colleges and universities but told school officials to not raise tuition more than 5 percent in the fall. . . . State and local government agencies in Virginia expect about $4.8 billion in stimulus money, but much of that will be directed to specific programs and projects. . . . Lawmakers will return to the Capitol on April 8 to consider Kaine's amendments and vetoes to the budget.” ••• Office of the Governor, March 6, 2009: “Governor Timothy M. Kaine today announced the allocation of $1.6 billion from the American Recovery and Reinvestment Act to education, public safety and transportation needs in Virginia. . . . The $1.6 billion that has been allocated to Virginia so far is targeted at three main areas: (a) K-12 education allocations; (b) public safety grants to localities; and (c) transportation and infrastructure funding. . . . . K-12 EDUCATION ALLOCATIONS -- Through the American Recovery and Reinvestment Act, Virginia school systems will receive approximately $730.4 million in fiscal stabilization funds which will be distributed to Virginia school divisions by formula based on the federal law. The Commonwealth is also receiving $281.4 million in funding for special education. Localities will also receive a total of $165.3 million for K-12 education through Title I.“ *** Office of the Governor, March 11, 2009: “Governor Timothy M. Kaine today announced that the Virginia Department of Medical Assistance Services (DMAS) will receive $1 million in funding and support from the Robert Wood Johnson Foundation (RWJF) to increase enrollment and retention of eligible children in Virginia's health insurance programs, known as FAMIS and FAMIS Plus (children's Medicaid). . . . Virginia was one of eight States selected for the four-year RWJF grant, ‘Maximizing Enrollment for Kids. Program.’” *** Office of the Governor, April 6, 2009: “Governor Timothy M. Kaine today announced the award of more than $7 million in funding for localities to purchase and rehabilitate foreclosed homes for resale to low-to-moderate or middle-income families. The three multimillion dollar grants are offered through Virginia's Neighborhood Stabilization Program (NSP), an initiative designed to ease the impact of foreclosures on neighborhoods severely hurt by the housing crisis. . . . The NSP grants are being awarded to Loudon County, which will receive $2 million; Spotsylvania and Caroline Counties in partnership with the Central Virginia Housing Coalition (CVHC), which will receive $2.5 million; and Stafford County and the City of Fredericksburg, in partnership with CVHC, which will receive $2.5 million. Overall, Virginia has received $38.7 million through the NSP, authorized under the Housing and Economic Recovery Act of 2008 and administered through the Virginia Department of Housing and Community Development. The three grants to localities are the first to be awarded through this program.” *** Office of the Governor, May 8, 2009: “Governor Timothy M. Kaine and Superintendent of Public Instruction Patricia I. Wright signed a memorandum of agreement today that commits the Commonwealth to participation in the State Common Core Standards initiative, a state-led process to develop K-12 English and mathematics standards that meet international academic expectations. The multi-state initiative will produce a voluntary ‘common core’ of rigorous academic standards to prepare students for postsecondary education and the 21st-century workplace. The effort is being coordinated by the National Governors Association (NGA) Center for Best Practices and the Council of Chief State School Officers.” *** Daily News-Record, Harrisonburg, May 14, 2009: “Forecasters now predict that State tax collections could be some 8.8 percent below 2008 levels by the time the year ends. . . . What makes this development even more troubling is that appropriations in the current cycle are based on a decline of 7.3 percent from prior levels. Hence the new $200-million-plus hole in State spending.” *** Office of the Governor, June 15, 2009: “Governor Timothy M. Kaine today announced that Virginia will join forces with Microsoft in an innovative public-private partnership to provide free technology training to displaced workers. Through the Microsoft Elevate America program, the software and technology giant will work with the Virginia Community College System to distribute 11,250 vouchers for technology training and certification. Elevate America also provides a wide variety of other free resources on its website including basic skills training and career resources to find internships and jobs. . . . Virginia will receive 5,000 vouchers for intermediate level online training, 5,000 vouchers for Microsoft business certification exams, and 1,250 vouchers for advanced technical professional online training. . . . Virginia's participation in the Microsoft's Elevate America program makes it the second State to take part in this groundbreaking initiative to prepare workers for the demands of a 21st century economy. Washington was the first State to take part in the initiative.” *** Richmond Times-Dispatch, June 16, 2009: “The State's revenue numbers from May are in, and things are worse than officials thought they would be. Based on the month's revenues -- which fell 15.6 percent compared with the same month last year -- Virginia's forecast budget gap widened another $75 million, for a total of $300 million for fiscal year 2009, which ends June 30. Gov. Timothy M. Kaine tempered the tepid financials by saying that the State will bridge the gap with the cost-cutting measures already in place -- and the use of about $109 million in federal stimulus funding and $49 million in unallocated budget surplus from the two-year $77 billion spending plan for fiscal 2009-2010. The governor also said no additional layoffs of State employees will be necessary. . . . The governor said he is committed to balancing the 2010 portion of the budget and writing the 2011-2012 budget without a tax increase. _________________________________ October 2008 Reduction Plan – Click under Reference Materials and Presentations: http://dpb.virginia.gov/budget/budget.cfm Virginia Governor Announces Massive Layoffs, Channel 8 News, Richmond, October 9, 2008: http://www.news8.net/news/stories/1008/559758.html K-12 Cuts, More Layoffs Ahead, Richmond Times-Dispatch, December 5, 2008: http://www.timesdispatch.com/rtd/news/state_regional/
Washington State: Declining Revenues and Continuing Spending Reductions Compiled from various sources named in the text and in the links below.
*** Office of the Governor, October 7, 2008: Gov. Chris Gregoire today announced actions that will save $330 million in the current budget. . . . In response to a slowing national economy, Gregoire directed the State Office of Financial Management (OFM) in September to find more savings to add to the $90 million being saved through freezes announced in August on hiring, out-of-state travel, personal service contracts and equipment purchases. Gregoire originally asked OFM for savings of $200 million, but because the national economic turmoil shows no sign of dissipating, the governor felt it prudent to expand those savings to $240 million. These actions will save the State $330 million in the current budget. In addition to the savings in the current budget, the governor’s actions will save an additional $605 million in the 2009–11 budget. Together with the State’s current $850 million surplus, these steps will almost halve what is projected to be an approximate $3.2 billion shortfall in 2011. Among the items included in savings are: (a) across-the-board cuts in State agencies, exempting certain programs in education, public safety and the protection of vulnerable individuals; (b) lower price for the Washington Assessment of Student Learning contract; (c) savings in Healthy Options premiums for children and adults on Medicaid or receiving TANF (Temporary Assistance for Needy Families); (d) suspending the computer project for the Family Leave program; (f) slowing implementation of the Working Families Tax Exemption.” *** Office of the Governor, November 25, 2008: Gov. Chris Gregoire today announced spending reductions that will save $260 million in the current budget, putting the budget in the black for the biennium that ends June 30, 2009. Agencies are being asked to further cut their remaining Fiscal Year 2009 General Fund spending, with some exemptions for revenue-creating activities and other legal obligations. These savings will combine with the $330 million being saved through freezes on hiring, out-of-state travel, personal service contracts and equipment purchases, as well as across-the-board cuts previously directed by the governor. “Our State is collecting less revenue due to continued national financial turmoil,” Gregoire said. “We must act now to reduce our spending and put our budget back in the black without touching the Rainy Day Fund. . . . Gregoire and her budget staff are now preparing a budget proposal for the next biennium, which runs from July 1, 2009, to June 30, 2011. The governor’s budget must be submitted by Dec. 20, 2008.” *** Office of the Governor, December 18, 2008: “Gov. Chris Gregoire today proposed her 2009–11 State budget, closing a projected $5.7 billion shortfall through a combination of program reductions, suspension of State employee, teacher and care worker salary increases, pension changes, increased federal contributions and the use of the State’s rainy day fund. . . . ‘Hardworking teachers, state employees and care workers provide immeasurably valuable services to the people of our State,’ Gregoire said. ‘They are well deserving of adjustments to maintain the value of their salaries. Unfortunately, we had no choice but to put their raises on hold. Forgoing the raises allowed us to protect early learning, keep smaller classes in our K-12 schools and protect teachers’ jobs, as well as avoid even deeper cuts to services for our most vulnerable and health care for children and families.’” *** Seattle Times, December 18, 2008: This article provides details on some of the Governor’s proposed budget cuts in higher education, K-12 education, public safety, human services, health care, Puget Sound recovery projects, transportation, and other services. *** Office of the Governor, January 14, 2009: In her second inaugural address, Governor Gregoire “outlined four goals for the legislative session: (a) create 20,000 new jobs for working families by rebuilding roads and schools and creating a green economy; . . . (b) balance our budget by focusing on basic needs -- protection of our children, our schools and colleges, our public safety, our environment, and out economy; (c) reform State government; . . . (d) encourage continuing generosity among all Washingtonians.: *** Office of the Governor, February 9, 2009: “Gov. Chris Gregoire today unveiled a wide-ranging proposal to streamline State government. . . . The reforms announced today would: (a) reduce the size of government by eliminating 154 boards and commissions, and merging and consolidating agencies; (b) deliver 21st century customer service by expanding online services, extending hours of operations for some State agencies, and increasing online education and training opportunities; and (c) streamline government agencies and operations by creating shared service functions to agencies can focus more on their core missions.” *** Office of the Governor, February 18, 2009: “Gov. Chris Gregoire today signed Senate Bill 5460, which imposes belt-tightening measures across State government, and House Bill 1694, which takes early action to reduce spending during the current fiscal year. . . . The Senate measure puts into law the hiring and spending freezes ordered by Gregoire last August and adds provisions to increase savings. All agencies of the legislative, judicial and executive branches will be prohibited from: (a) filling new or vacant positions; (b) entering into personal services agreements or contracts; (c) purchasing equipment costing more than $5,000; (d) out-of-state travel or training. The legislation provides for specific exemptions — for key areas such as public safety, revenue generation and the securing of federal funding. . . . House Bill 1694 implements measures to decrease spending by $635 million in the general fund and near-general fund budget in the current biennium, which ends June 30. All State agencies will be required to impose significant cuts to reach the desired savings levels. . . . ‘These bills are just the first step’ . . . said Rep. Kelli Linville. . . . ‘The savings in these two bills address a good chunk of the projected shortfall in the supplemental budget.’” *** Seattle Times, February 20, 2009: “A preliminary State revenue forecast Thursday (February 19) pushed Washington's state budget shortfall to $8 billion. . . . Washington state forecasters had previously projected a nearly $6 billion shortfall. Thursday's preliminary forecast shows an additional $721 million gap in the current two-year budget and $1.6 billion more in the next biennium that starts in July. That pushed the overall shortfall to $8 billion. . . . . Washington ranks among the top 10 states in the country in terms of the size of its budget shortfall. . . . More than 70 percent of the money the State collects comes from sales and business-and-occupation taxes.” *** Oregon Public Radio News, March 6, 2009: “Washington State’s yawning budget gap just took another $175 million hit. This time it’s not because of lost tax revenue. Instead demand for State services is on the rise as the economy declines. . . . The new caseload forecast confirms what lawmakers feared. K-12 enrollment is up as parents move their kids from private to public schools. As the economy sheds jobs, more people are applying for cash assistance. Applications for state-funded health programs are also on the rise. . . . Lawmakers will have to write the additional $175 million in caseloads into a budget that aims to close a projected $8 billion shortfall.” *** Puget Sound Business Journal, March 19, 2009: “In the new State revenue forecast released at 10 a.m. today, State officials pegged the total State budget shortfall at $9 billion through mid-2011. That’s down more than $550 million from predictions made a month ago in an unofficial preliminary forecast (see February 20 above) and down by almost $3 billion from a November estimate. State lawmakers have already made some cuts, but will have to make far deeper ones as they write a budget before the Legislature’s scheduled adjournment on April 26.” *** Office of the Governor, April 2, 2009: In a statement released today, the Governor said that “I recognize the tremendous difficulties that legislators are facing as they craft a budget under these challenging economic conditions. However, as I have stated before, I do not support a State income tax. The new proposal will undoubtedly raise constitutional and legal challenges and probably wouldn’t bring in new revenue in time to address the economic crisis we face.” *** Office of the Governor, April 7, 2009: “Gov. Chris Gregoire today urged legislators to consider two proposals to provide funding to the State’s K-12 and higher education systems. . . . Gregoire is asking State legislators to temporarily lift the levy lid for the K-12 education system, freeing up $68 million a year for local school districts. . . . Gregoire also proposes to give governing boards the authority to approve a maximum 14 percent tuition increase for the public four-year universities and a maximum 7 percent increase for the community and technical colleges. . . . Gregoire acknowledged that students and families will have to sacrifice, but added President Obama and Congress have significantly increased financial aid, which will offset the effects of higher tuition.” *** KXLY TV, Spokane, April 21, 2009: “The Washington Legislature has passed a sweeping overhaul of the State's K-12 education system. . . . The bill creates a 10-year, phased-in road map for improving public schools. It redefines the State's top constitutional priority -- providing for basic education. . . . There's no money in the plan yet. But officials have said the overhaul could cost billions of dollars.” *** The Olympian, April 27, 2009: This article reviews results at the close of the Legislature’s session. Among many other things, the reporter states that the Legislature “closed the budget gap with $4 billion in spending cuts, $3 billion in federal aid and the rest using one-time raids on a rainy-day fund and construction funds. To get there, they had to suspend cost-of-living raises for teachers and state workers, slash more than $1 billion from public school funding and universities, raise tuition by as much as 14 percent, and reduce money for nursing homes, health-care programs and mental-health programs. . . . Despite a more than $1.1 billion reduction in State spending in the operating budget, Democrats increased spending overall using the federal aid to almost $35 billion. . . . (but they) avoided proposing a general tax increase to bridge the budget. . . . Lawmakers redefined basic education for the first time in 30 years, promising a potential $1 billion to $3 billion-a-year boost in funding for public schools. But again, in recognition of the sour economy, they delayed its effects until 2013, and much of it won’t take full effect until 2018” (see the April 21 item above). Many more details are included in the article. *** Office of the Governor, April 27, 2009: “Gov. Chris Gregoire today thanked members of the Legislature for their hard work and dedication following their adjournment yesterday (April 26). . . . (But) the Legislature adjourned last night with a few issues unresolved that may need attention in a special session, including school levies and offender sentencing measures. Some of the items left undone are necessary to achieve all of the savings assumed in the budget. . . . (The Governor said) I will be meeting with legislative leadership soon to determine when to call a special session to address these important issues.’ . . . (The Governor also said that) the Legislature faced the daunting task of addressing a $9 billion shortfall in the State budget. Reductions were required in every aspect of State services to produce a balanced spending plan. “There is simply no way to sugarcoat the impact of a $9 billion hole in the State budget,” Gregoire said. Some of the areas hardest hit in the budget include: (a) Health care, where 40,000 fewer people will receive state-subsidized health insurance; (b) K-12 education, which absorbed cuts in class-size reduction funds, resulting in larger classes for students; (c) Higher education, which will have to decrease access and increase class sizes; and (d) Human service providers, whose reimbursement rates will be reduced, resulting in less access to services. Programs and services must adjust for significant reductions in administrative spending, which means there will be fewer people to deliver services. . . . Gregoire recognized the difficulties that State employees will face in a letter she sent to State workers this morning. ‘Employees will need to make difficult personal adjustments. For instance, we may be asking employees to take unpaid furloughs to save jobs and money.’” *** Seattle Times, April 29, 2009: “Thousands of Washington's newest teachers will soon be told they may lose their jobs this fall, the result of deep cuts made to the state education budget. . . . The axing of $800 million from public-school funding will have the biggest impact on teachers with the least experience, at a time when jobs are scarce around the State. . . . The State Superintendent of Public Instruction's office thinks 3,000 to 5,000 teachers could lose their jobs. The Washington Education Association, the State teachers union, predicts 6,000 in public schools and higher education could be notified of layoffs” This article includes information on the situation in various school systems. *** Economic and Revenue Forecast Council, May 11, 2009: This Economic & Revenue Update states that “the trend in Washington initial claims for unemployment insurance suggests that we may be nearing the bottom of the current recession in our State. . . . The unemployment rate, however, continues to increase. It jumped from 8.3% in February to 9.2% in March as the State’s economy lost 20,000 non-farm payroll jobs.. . . Housing permits in Washington improved to 14,100 in March, from a 27-year low of 12,100 units in February. . . . There also appears to be increased activity in existing home sales.. . .The revenue collections reported here are for the April 11, 2009-May10, 2009 collection period. . . . Adjusted for special factors, collections in the current period are down 13.5% below their year-ago level. Unadjusted, the decline is 14.0%. Collections for this period are $40.8 million (4.0%) below the March 2009 forecast. FY to date, collections are down $859.8 million (8.8%) from the same period in FY 2008.” *** TriCity Herald, Kennewick-Pasco-Richland, May 19, 2009: “Gov. Chris Gregoire approved the State's $35 billion two-year operating budget on Tuesday (May 19), calling the slash-and-burn spending plan a ‘necessary evil’ that manages to protect education programs while the state waits out a deep recession. . . . About half of the deficit solution came from federal bailouts and other one-time fixes, and about half came from cuts to projected spending. Changes to tax law and other revenue drivers, such as expanded liquor sales, make up the balance. The new budget assumes no general tax increases. . . . About 3,000 jobs will be lost through spending cuts in the new budget, including teachers. Some 40,000 people will be cut from state-subsidized health care. Hospitals and nursing homes will be paid less to care for the poor, and university students could see their tuition jump by nearly a third over two years. . . . Gregoire vetoed several provisions of the budget on Tuesday, most notably the Legislature's $29 million raid of surpluses in the State auditor's voter-approved performance audit program.” *** Economic and Revenue Forecast Council, May 27, 2009: In its preliminary June economic forecast, the Council stated, among other things, that “Washington employment growth since January has been much weaker than expected in March. On top of that, the monthly estimates through January 2009 were revised down, based on newly available payroll data for the fourth quarter of 2008. . . . The new national GDP (gross domestic product) forecast is very similar to the forecast adopted in March, a welcome development after a series of downward revisions. We believe the recession will officially end sometime in the third quarter. . . . The forecast assumes a U-shaped recovery. Growth turns slightly positive in the second half of 2009 but remains weak for a year, picking up steam in the second half of 2010 and 2011.” *** Office of the Governor, May 27, 2009: “Gov. Chris Gregoire today announced $672 million that is now available for Washington State under the under the American Recovery and Reinvestment Act (ARRA) to support education improvements. . . . Washington will be eligible to apply for another $331 million this fall.” *** Office of the Governor, June 3, 2009: “Gov. Chris Gregoire today announced that the Department of Community, Trade and Economic Development (CTED) was awarded $22.4 million in ARRA funds to administer Edward J. Byrne Memorial Justice Assistance Grants across Washington. . . . ‘These recovery based grants will retain prosecutors, fight gang-related crime, and invest in critical community-based crime prevention programs across the State,’ said Gregoire. . . . The Byrne Memorial Justice Assistance Grant Recovery funds will restore 16 state trooper positions that serve local drug task forces, retain or restore 56 local law enforcement and related jobs across the State.” *** Economic and Revenue Forecast Council, June 18, 2009: “The June 2009 General Fund State forecast for the 2007-09 biennium is $27.2 billion, which is $185 million lower than expected in the March forecast. The forecast for the 2009-2011 biennium is $29.8 billion, which is $297 million less than expected in the March forecast. The 2009-2011 forecast change includes $226 million in new revenue as a result of legislation. Without this $226 million non-economic change, the forecast revision for the 2009-11 biennium would have been a reduction of $523 million.” *** The Olympian, Olympia WA, June 26, 2009: “Gov. Chris Gregoire has ordered another round of State government spending cuts in response to yet another revenue forecast that shows fewer tax dollars flowing into the State treasury. . . . Drawing down state reserves to $53 million is simply too risky and the reason the governor and budget director Victor Moore ordered State agencies to cut their payroll costs by about 2 percent. That’s expected to generate $200 million to $250 million in savings. Basically, the governor will be imposing a hiring cap,” _________________________________ Gov. Gregoire Announces Plans for $330 Million in Budget Savings, Office of the Governor, October 7, 2008: http://www.governor.wa.gov/news/news-view.asp?pressRelease=1037&newsType=1 Gov. Gregoire Announces Plans for $260 Million in Additional Budget Savings, Office of the Governor, November 25, 2008: http://www.governor.wa.gov/news/news-view.asp?pressRelease=1058&newsType=1 Gov Gregoire Proposes Budget to Protect State’s Values During Tough Times, Office of the Governor, December 18, 2008: http://www.governor.wa.gov/news/news-view.asp?pressRelease=1068&newsType=1 Gregoire Budget Proposes Deep Cuts, Seattle Times, December 18, 2008: http://seattletimes.nwsource.com/html/localnews/
West Virginia: After Record of Stability a More Cautious Outlook Compiled from various sources named in the text and in the links below.
*** Office of the Governor, January 9, 2008: In his 2008 State of the State Address, Governor Joe Manchin III stated that “the State’s average unemployment rate last year (2007) was 4.6 percent, the lowest unemployment average in the State’s history. And, the number of West Virginians working last year averaged 778,269 – the highest number during a year ever recorded. . . . Since 2004, we’ve tackled our State’s debts, putting an additional $1.7 billion toward our retirement systems, so that our State employees can be confident that the money they’ve been working so hard to earn will be there when they need it. We’ve also . . . cut the size of State government for the second year in a row, the first consecutive decrease in employees in at least 16 years, showing that the days of ballooning State payrolls are officially over. And, we’ve improved services to our citizen. . . . We’ve also cut taxes, because West Virginians deserve to keep more of what they earn. . . . And while doing all of this, we have also found ways to consistently increase the pay of our State employees, school service personnel and teachers, with a majority of professional educators receiving increases since 2004 of between 10.5 percent and 19.0 percent.” *** Office of the Governor, November 26, 2009: “Effective Jan. 1, 2009, the West Virginia Children’s Health Insurance Program (WVCHIP) will expand its health coverage for children by increasing the upper income limit for participation from 220 percent to 250 percent of the federal poverty level.” *** WSAZ NewsChannel 3, Charleston, January 13, 2009: “West Virginia is among only six States nationwide not facing a financial crisis. . . . Governor Joe Manchin said it's because the State paid down its debt, fixed workers comp, and invested in the right priorities. Experts say West Virginia can boast a budget surplus for one main reason -- because the Mountain State has mountains and, therefore, a lot of coal. The other five States in the black also are major energy producers.” *** Office of the Governor, February 11, 2009: Among the many points that Governor Joe Manchin III made in his State of the State Address are as follows. “Our commitment to paying down pension debt and unfunded liabilities during the past four years has saved literally billions of dollars. . . . We have also had record State revenue collections for three years in a row, which has led us to tremendously outperform our budget forecasts. This happened based on the confidence in our State that citizens and investors gained due not only to our commitment to pay down our debt, but also our efforts to tackle our outdated workers’ comp system, institute insurance reforms, and reduce our State tax load on both individuals and businesses – something that we’re looking to do more of in the future. . . . Because of these responsible actions, we were able to provide more than $300 million in well-deserved pay increases four years in a row for our teachers and our State employees. . . . I cannot include any base-building salary increases in this year’s budget. I will, however, ask for the ability to share any additional money that we may have with our teachers, service personnel and State employees, if financial conditions improve enough for us to afford to do so. . . . I’ve joined the State Department of Education in formulating a bill that will give our schools the flexibility they need to meet the needs of diverse learners. . . . (And) the School Innovation Zones Bill will give teachers, principals and school communities greater control over critical education factors that affect student achievement.” *** West Virginia State Budget Office, February 11, 2009: In submitting his recommended budget for the fiscal year ending June 30, 2010, Governor Manchin’s letter said that “since 2005, more than 200 companies have located or expanded in West Virginia and, together, they have invested $8.6 billion in the Mountain State. . . . For the first half of 2008, West Virginia exports grew 43 percent, outpacing the national rate of 18 percent, and our exports are expected to be about $5 billion for 2008 -- nearly $1 billion more than in 2007. . . . While we are in better financial shape than our neighbors, West Virginia is not immune to the effects of the struggling national economy. We must be more diligent now than ever before.” The Executive Message also summarizes recommendations for (a) responsible government; (b) energy leadership; (c) workplace safety; (d) education; (e) health care; (f) legal reform. The FY 2010 recommended budget includes information that “general revenues are predicted to grow 1.8% above FY 2009 revenues. Lottery and Excess Lottery revenues are estimated to decrease by 2.4%. Major budget expenditure drivers for FY 2010 are a 6% increase in the employers’ share of PEIA premiums; OPEB (Medicaid base builder); and increased funding for the retirement systems due to the downturn of the national economy and associated investment losses. These three expenditure drivers account for 94% of all base building additional costs for FY 2010. The Governor’s recommended FY 2010 budget totals $3.972 billion (as compared with $3,898,995,000 in FY 2009 appropriations). *** West Virginia Gazette, Charleston, April 2, 2009: “Citing a need to ‘take responsible cost-control measures,’ Gov. Joe Manchin has imposed restricted hiring for all executive branch agencies through June 30. The governor also said he would probably wait until next month to give lawmakers his revised revenue estimates for next year, meaning legislators would have to wait until May to put together a budget that takes effect July 1. Manchin issued a memorandum this week to cabinet secretaries and department heads that they are not to fill any vacant job positions though June 30 without approval of the governor's office.” *** Charleston Daily Mail, April 13, 2009: “Lawmakers ended their 60-day regular session at midnight Saturday (April 11), briefly started an extended session, and were scheduled to reconvene May 26 to address the budget. The next fiscal year starts July 1. . . . How much tax revenue West Virginia takes in this month and how the State can spend an expected $1.8 billion in federal stimulus money will play big roles in how executive and legislative leaders craft a final version of the budget for fiscal year 2010, and how they will identify about $200 million in cuts.” *** The Intelligencer, Wheeling News-Register, May 31, 2009: “During the next few decades West Virginians will have to dig deep into our pockets to find $7 billion to help government retirees pay for health insurance. . . . The $7 billion -- nearly twice the state's general fund budget for the coming year, incidentally - is the amount needed to cover taxpayer subsidies for health coverage provided to retirees, including teachers, by the Public Employees Insurance Agency (PEIA) . . . . A few weeks ago, members of the PEIA Finance Board decided to tackle the mountain of debt themselves - at least to stop adding to it. They agreed that retiree health insurance should not be subsidized for new employees hired after Jan. 1, 2010. Not a single current government employee would be affected. Yet some public employee union leaders went ballistic over the plan. They have threatened to file lawsuits to block it.” *** The State Journal, Charleston, June 4, 2009: “It took State lawmakers only six days to trim $198 million from a $4.33 billion State budget, but those cuts were made easier to bear thanks to federal funds used to offset most spending reductions. Lawmakers in both in the House of Delegates and Senate passed the roughly $4.3 billion budget for the coming fiscal year on May 31, finishing the work they began during the regular session earlier this year. The State's total budget is actually $10 billion once non-discretional spending, such as certain federal funds, is included.” *** West Virginia Gazette, June 15, 2009: “West Virginia lawmakers returned to the Capitol on Monday, this time to address $45.3 million worth of funding measures before the new State budget takes effect July 1. . . . Gov. Joe Manchin's special session agenda lists 18 supplemental appropriation proposals. . . Three of the bills reassign $6.1 million in already budgeted funds within State agencies.” *** Charleston Gazette, June 17, 2009: “The Legislature ended its second special session of the year Wednesday (June 17) after voting to increase State spending by $39.1 million. . . . The new spending includes $15 million for roads and bridges, $7.4 million for higher education and $3.8 million for flood relief. At least $7 million will restore cuts to the new budget that takes effect July 1, but only as one-time funding. Beneficiaries include public schools, which will get $5 million for student enrichment program. Another $1 million goes to domestic violence programs, while free clinics and in-home family education can expect $300,000 apiece.” (NOTE: It is reported that the Legislature passed the six supplemental appropriations bills that the Governor had proposed.) *** U.S. Department of Education, July 1, 2009: “U. S. Secretary of Education Arne Duncan today announced that $178.5 million is now available for West Virginia under the American Recovery and Reinvestment Act (ARRA) of 2009. This funding will lay the foundation for a generation of education reform and help save hundreds of thousands of teaching jobs at risk of state and local budget cuts. West Virginia will be eligible to apply for another $88 million this fall. . . . To date, West Virginia has received $74 million in education stimulus funds—representing a combination of funding for Title I, IDEA, Vocational Rehabilitation Grants and Independent Living Grants. On April 1, West Virginia received $30.5 million in Title I funding and $41 million in IDEA funding. This represents 50 percent of the Title I and IDEA funding West Virginia is eligible for in total. On April 1, West Virginia also received more than $2 million in Vocational Rehab funds and $496,000 in Independent Living funds.” _________________________________ Governor Joe Manchin’s State of the State Address, Office of the Governor, January 9, 2008: http://www.wvgov.org/sec.aspx?id=109 Feds Approve Governor’s Plan to Provide Health Care Coverage to More WV Children, Office of the Governor, November 26, 2008: http://www.wvgov.org/sec.aspx?id=32&articleid=1703 W.Va. Among Only Six States Not Facing Budget Crisis, WSAZ News Channel 3, Charleston, January 13, 2009: http://www.wsaz.com/newswestvirginia/headlines/37549189.html Governor Joe Manchin’s 2009 State of the State Address, Office of the Governor, February 11, 2009: http://www.wvgov.org/sec.aspx?id=114 Governor’s FY 2010 Budget (Recommended), West Virginia State Budget Office, February 11, 2009 (Volume 1) -- Details per department/agency are shown in Volume II: http://www.wvbudget.gov/ Manchin Restricts New Hiring, Says Revised Budget Will Wait, West Virginia Gazette, Charleston, April 2, 2009: http://www.wvgazette.com/News/politics/200904020650 Legislative Look-Ahead: Budget Decisions Still Loom, Charleston Daily Mail, April 14, 2009: http://www.dailymail.com/News/statehouse/200904120171
Wisconsin: Worst Deficits in State’s History Are Addressed Compiled from various sources named in the text and in the links below.
*** The Bond Buyer, New York City, May 19, 2008: “Gov. Jim Doyle reshaped the Wisconsin Legislature’s budget repair bill (introduced by the Governor in March), using his veto pen to increase the number of spending cuts and lower the level of cash reserves and tobacco refunding proceeds earmarked to help eliminate a $527 million shortfall in the current $57 billion two-year budget. . . . The governor restored a $125 million school aid payment that the legislative bill had pushed off until the next fiscal biennium that begins on July 1, 2009. . . . The State earlier this year faced a $650 million shortfall but the governor cut it down to $527 million by rolling over repayment of short-term borrowing to the next fiscal biennium and ordering agency cuts.” *** Office of the Governor, June 25, 2008: In his letter to agency heads, Governor Jim Doyle wrote that “the Major Budget Policies and Budget Instructions call for most agencies to hold their overall fiscal year 2009-2010 and fiscal year 2010-11 GPR budgets to fiscal year 2008-09 levels. . . . These targets are necessary to ensure the State government lives within its means. . . . In addition, most agencies will be required to submit plans to reduce all nonfederally-funded State administrative operations appropriations by 10 percent. . . . Agency budget requests are due September 15.” *** The Daily Cardinal, University of Wisconsin-Madison, November 21, 2008: “Gov. Jim Doyle announced an increase in Wisconsin’s projected budget deficit and presented steps to move the State out of its current economic struggles at a news conference at the state Capitol Thursday. The deficit projection increased from $5 billion to $5.4 billion for the 2009-11 biennium, and according to Department of Administration Secretary Michael Morgan, it is the worst deficit in Wisconsin history. The State already faces a $346.2 million budget shortfall for the 2008-’09 fiscal year, Morgan said in a letter to Doyle. . . . Doyle said one of his main concerns is maintaining the quality of Wisconsin’s schools despite necessary spending cut. . . . Doyle outlined several short-term solutions to the deficit, including reducing State agency spending by an additional $20 million, keeping about 3,500 government jobs unfilled, selling 500 State fleet vehicles, and stopping all employee bonuses.” *** Office of the Governor, January 13, 2009: Citing a unique opportunity for reform in the face of difficult economic circumstances, Wisconsin Governor Jim Doyle and Minnesota Governor Tim Pawlenty 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 29, 2009: In his State of the State Address, Governor Doyle cited the estimated $5.4 billion budget gap (17 percent of the biennial budget) and said “that figure is expected to grow with the latest data. . . . . We’ve taken many steps in Wisconsin so far to address this crisis, including $500 million in spending cuts this year, and many more are to come. . . . Next month, I will stand before you to deliver a budget that will determine our course for the next two years. And I am not going to say education funding is off limits. But I will not allow cuts that ruin the quality of our classrooms or make universities and technical colleges out of reach for working families. I am not going to say we won’t make reductions in Medicaid, but I will not allow cuts to undermine our ability to get a sick kid to a doctor. . . . As we take on the challenges facing our State in the coming year, there are important steps we can take to save lives, improve our health, and make our world safer. First, we can make sure kids with autism get the treatment they need. Private insurers should cover autism. . . . There are clear steps to improve childcare in our State, and we can take them now. . . . We can do our part to address climate change and the way we use energy. . . . We can change school funding in a way that encourages the hiring and retention of good teachers, provides for high standards, and encourages efficiencies in our school districts.” *** Office of the Governor, February 17, 2009: In his Budget Address, Governor Doyle said that the budget deficit now “stands at $5.7 billion. . . . This budget will cut $2.2 billion more over the next biennium. . . . We will cut $931 million from existing programs over the next two years. These are the deepest cuts our State has ever faced. . . . On top of all the other cuts we made -– this budget provides for an across-the-board 1 percent reduction in all State spending. . . . One in 10 State jobs, or 3,600 overall, will be left unfilled. This budget does not provide for any pay raises, and State workers should expect to make higher contributions for health insurance and retirement. . . . The State will have to trim back its reimbursement rates for services such as medical care. . . . Our choices would be even more difficult without the legislation that President Obama signed today in Denver. The American Recovery and Reinvestment Plan is very important to Wisconsin and every State in our country. . . . This budget does not fund nearly what was requested (for education), but it provides an increase for our schools when almost everything else is being cut.. . . . We have made Wisconsin a national leader in access to basic, affordable health care coverage. That’s not an achievement we can let go of because times are tough. . . . Our university system is going to have to be more resourceful, but this budget makes sure that more students in Wisconsin have a shot at a higher education and that tuition stays within the means of Wisconsin families. . . . There are three targeted ways to raise the revenues we need to protect what’s important to Wisconsin. First, this budget calls for taxpayers to pay one percent more on any earnings above $300,000 a year. . . . Second, Wisconsin is the only State with an income tax that exempts 60 percent of capital gains from any tax. This budget would lower the exemption to 40 percent of capital gains earnings. . . . Third, we can pass an oil assessment so that big oil companies, which are still making record profits, pay their share for our roads.” *** Office of the Governor, April 2, 2009: “Governor Jim Doyle today announced that the Robert Wood Johnson Foundation (RWJF) has awarded the state $1 million for the Department of Health Services to participate in the Maximizing Enrollment for Kids Program, an initiative to increase enrollment and retention of eligible children in BadgerCare Plus.” Wisconsin is one of eight States selected to participate in the RWJF Maximizing Enrollment for Kids program.” *** Office of the Governor, April 2, 2009: “Governor Jim Doyle announced today that his Capital Budget will create or maintain approximately 30,000 jobs and help stimulate local economies around the State. . . . The Capital Budget provides $1.4 billion over the next two years for the State Building Program, including $484.7 million in general fund state bonding with the remainder coming from the federal government, program revenue and private donations.. . . Campuses in the University of Wisconsin system will receive nearly 70 percent of the General Fund Supported Borrowing in the building program. It invests in improved education and expanded classrooms with projects like the new academic buildings at UW-La Crosse, UW-Oshkosh and UW-Parkside. Separately, plans for a new academic building are moving forward at UW-Superior, as well. . . . The Building Commission approved the Capital Budget today (April 2). It will be submitted to the Joint Finance Committee for their consideration and included in the State budget bill.” *** Wisconsin Department of Workforce Development (DWD), April 16, 2009: “DWD Secretary Roberta Gassman announced today that Wisconsin’s unemployment rate for March 2009 was 9.4 percent -- up 0.6 percentage points from February’s 8.8 percent and up from January’s 7.7 percent. The national rate for March was 9.0 percent, compared to 8.9 percent in February and 8.5 percent in January.” *** Office of the Governor, April 17, 2009: “Governor Jim Doyle today announced Wisconsin has received $38 million in American Recovery and Reinvestment Act funds to help dislocated workers, youth and people with disabilities find jobs and join in revitalizing Wisconsin’s economy. . . . In addition, Wisconsin has received $7.29 million in federal Wagner-Peyser funding for re-employment services. Governor Doyle will use these Recovery funds to provide intensive job service efforts to all people receiving unemployment benefits. As part of the intensive effort, individuals are encouraged to register with the state’s new Internet employment site, JobCenterofWisconsin.com, a free, user friendly site accessible at all hours of the day.” *** Office of the Governor, May 7, 2009: “Governor Jim Doyle today announced more deep cuts in the State budget, as the State is facing a budget shortfall in the midst of the national economic crisis. The Legislative Fiscal Bureau next week will release figures that could show a deficit reaching $1.5 billion. . . . (The Governor) will not propose new taxes. Governor Doyle’s budget already freezes pay and requires State employees to contribute more to retirement and health insurance. Today he said he will roll back 2% pay increases that were to be effective in June. All state employees, including those in the Governor’s office, will be subject to furloughs of 8 days per year. The Governor cannot be furloughed, so he will return pay for 8 days per year to the State. Governor Doyle said deeper cuts to State government spending will reach at least 5%. He is also directing all agencies to review all service contracts to reduce personnel costs.” *** Legislative Fiscal Bureau, May 11, 2009: In a letter to the Senate Chair and Assembly Chair, the Director of the Legislative Fiscal Bureau stated that “prior to April, actual collections, in the aggregate, were tracking closely with estimates. . . . However, the April collection report shows a decrease of 35.8% (- $317 million) in monthly individual income tax revenues compared to last April. Year-to-date income tax collections are now 8.3% below last year’s level, compared to -2.7% through March. Similar decreases have occurred at the federal level and in a number of other States. . . . Based on our review of tax collection data and the new economic forecast, we now believe that general revenue fund tax revenues will be lower than the previous estimates by $408 million in 2008-09; $573 million in 2009-10; and $622 million in 2010-11. The three-year reduction is $1,603 million, or approximately -4.3%.” *** Office of the Governor, May 22, 2009: “Governor Doyle, joined by Legislative leaders, today laid out priorities for addressing the State budget deficit, as Wisconsin is facing an additional $1.6 billion budget shortfall. . . . ‘My priorities in addressing this historic budget deficit are clear -- first, I am not proposing any new taxes,’ Governor Doyle said. ‘Second we must make deep cuts to State government spending. Third, we must preserve our essential services such as education and public safety.” An accompanying chart outlines the framework for addressing the deficit. This includes (a) cuts to agencies, shared revenue, and aids ($669.7 million); (b) furloughs and rollbacks of 2% raise ($224.0 million); (c) Medicaid/hospital assessment re-estimate ($165.0 million); (d) redeployment of 911 fee to support police and fire protection ($100 million); (e) maintain current levels of tax credits/improved tax collections/IRC update modifications ($185.2 million); (f) debt restructuring/lower interest rates ($285.0 million). *** Journal-Sentinel, Milwaukee, June 1, 2009: In the Wisconsin Legislature, “intense, behind-the-scenes negotiations have yielded changes in the rules for Milwaukee's controversial private school voucher program, imposing requirements substantially more like those of public schools but avoiding some of the provisions voucher supporters feared the most. The 120-plus private schools, with about 20,000 students, will have to give standardized tests and report the results, employ teachers who have at least bachelor's degrees and meet the same minimum hours of instruction as public schools, according to the agreement that is part of the State budget proposal endorsed Friday by the Legislature's powerful Joint Finance Committee. The per-student amount paid by the State to the private schools will be reduced 2.5%, in line with the reduction in general state aid for public schools.” *** Office of the Governor, June 24, 2009: “Governor Jim Doyle today announced Wisconsin is receiving $44,644,693 in unemployment insurance modernization incentive funds from the U.S. Department of Labor. Wisconsin qualified for the funds available under the American Recovery and Reinvestment Act by allowing workers to use their more recent earnings to qualify for benefits. . . . The Wisconsin Department of Workforce Development can use the funds to pay unemployment benefits or, if appropriated by the legislature, for administering its unemployment insurance program or delivering employment services.” *** Pioneer Press, Twin Cities, June 26, 2009: This article reviews “the two-year budget that Wisconsin's Legislature passed early Friday evening (June 26). The $62 billion two-year spending plan closes a record $6.6 billion shortfall, brought on because State agencies' spending requests outpace projected revenue. . . . .(Among other things), all State workers will be forced to take 16 days off without pay over the next two years. About 1,400 could be laid off. A 2 percent pay raise is being rescinded, pending union approval for many workers, and most State agencies are being cut 6 percent.” The article summarizes. the budget’s major provisions. *** Office of the Governor, June 29, 2009: “Joined by local officials, business and education leaders and Wisconsin citizens, Governor Jim Doyle signed into law today a State budget that builds upon the State’s commitment to expand access to affordable health care coverage, invests in Wisconsin businesses that will create jobs and lead to future growth, and continues to protect priorities like education and police and fire protection, in the face of unprecedented national economic challenges. . . . From federal and State funding, schools will see an increase of $107 million over the next two years. The budget permits school districts to exceed revenue caps for energy efficiency costs immediately, and for school safety, nurses and transportation costs in two years. The budget continues to invest in the Governor’s BadgerCare Plus program so all children continue to have access to health care and support program expansions covering low-income families and adults, thereby ensuring that 98 percent of Wisconsin citizens will now have access to affordable, high-quality care. It also requires insurance companies cover treatment for autistic children and mental health treatment by additional licensed providers. . . . State spending is cut by over $3 billion in this budget. It cuts from existing State programs over the next two years by: (a) imposing across the board cuts of 1 percent for State agencies, and many agencies and programs were cut by an additional 5 percent or more; (b) rolling back the 2 percent State employee raises that were to be effective this month; (c) directing State agencies to review all service contracts to reduce personnel costs; (d) laying off at least 1,000 State employees. . . . The budget does not raise taxes on middle class families, it does not increase the gas tax and it does not include a sales tax increase.” _________________________________ Wisconsin Gov. Revises Budget Bill, The Bond Buyer, New York City, May 19, 2008: http://www.bondbuyer.com/article.html?id=200805162MEXKHWJ Letter to Agency Heads, Office of the Governor, June 25, 2008: http://www.doa.state.wi.us/docview.asp?docid=7110&locid=3 Wisconsin’s Projected Budget Deficit Grows to $5.4 Billion, Daily Cardinal, University of Wisconsin-Madison, November 21, 2008: http://www.dailycardinal.com/article/21452 Governors Doyle, Pawlenty Sign Groundbreaking Executive Orders to Explore Shared Services, Office of the Governor, January 13, 2009: http://www.wisgov.state.wi.us/journal_media_detail.asp?locid=19&prid=3894 State of the State Address, Office of the Governor, January 29, 2009: http://www.wisgov.state.wi.us/journal_media_detail.asp?locid=19&prid=3922 Text of Governor Doyle’s 2009-2011 Budget Address, Office of the Governor, February 17, 2009: http://www.wisgov.state.wi.us/journal_media_detail.asp?locid=19&prid=3966 *** To access the complete 2009-2011 executive budget: http://www.doa.state.wi.us/debf/execbudget.asp Governor Doyle Announces $1 Million to Help Children and Families Maintain Health Insurance Coverage, Office of the Governor. April 2, 2009: http://www.wisgov.state.wi.us/journal_media_detail.asp?locid=19&prid=4073 Governor Doyle Announces Capital Budget Creates 30,000 Jobs, Helps Economy, Office of the Governor, April 2, 2009: http://www.wisgov.state.wi.us/journal_media_detail.asp?locid=19&prid=4074 *** The Governor’s proposed 2009-2011 Capital Budget is at: http://www.doa.state.wi.us/category.asp?linkcatid=771&linkid=96&locid=4 March Unemployment Rates Announced, Wisconsin Department of Workforce Development (DWD), April 16, 2009: http://www.dwd.state.wi.us/dwd/news.htm Governor Doyle Announces $38 Million to Help Unemployed Return to Work, Revitalize Economy, Office of the Governor, April 17, 2009: http://www.wisgov.state.wi.us/journal_media_detail.asp?locid=19&prid=4115 ***The Wisconsin Office of Recovery and Reinvestment website is at: http://recovery.wisconsin.gov/ Governor Doyle Announces Cuts to State Budget, Office of the Governor, May 7, 2009: http://www.wisgov.state.wi.us/journal_media_detail.asp?locid=19&prid=4224
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