Category Archives: Budgets

by Dick Hall-Sizemore

Maybe it was the weirdness of amending the biennial budget after Year 2 of the biennium had started.  Maybe all the money they had to spend made them dizzy. Maybe they were in a hurry because many of them were in the middle of re-election campaigns. Whatever the reason, the General Assembly decided in its special session to adopt the budget to sacrifice transparency in favor of efficiency.

A quick review of the normal procedure will serve to clarify how different this year was. Normally, after both houses have considered the budget bill and rejected each other’s version, the bill is sent to a conference committee comprised of members from both houses. In a largely shrouded process, the conference committee eventually produces a report consisting of all the changes to the introduced budget bill that its members have agreed upon. (Comparisons to the Vatican College of Cardinals electing a new Pope are apt.) Continue reading →

By Dick Hall-Sizemore

Steve Haner and I unofficially tag-team on the state budget. Fittingly, he covers the revenues (taxes) and I cover the spending.

Regarding the revenues available for spending, it is notable what was missing from the presentations by the Governor and Secretary of Finance in their appearances before the money committees last month. There was no mention of the $5.1 billion balance tirelessly touted by the Governor in his public calls for more tax reductions.

In the presentations and charts presented, it was difficult to discern what that unencumbered balance actually was. Using the data in the staff presentation to the Senate Finance and Appropriations Committee, one is able to tease out the $5.1 billion being touted by the Governor. First, there was $2.1 billion. This is hard to follow, but basically it was a balance designated in 2022 for “Additional Taxpayer Relief” and subsequently rolled into the unrestricted general fund balance. However, both the administration and the money committees were carrying it on their spreadsheets as an amount reserved for taxpayer relief and that is how the Comptroller identified it in her annual report to the Governor.  To that $2.1 billion the Governor added the additional $3.0 billion in general fund revenue projected over the official estimate.

That was a valid projection of the general fund balance at the end of FY 2023. However, as both Steve and I have pointed out several times on this blog, that was a gross amount. After deducting for the required deposits to the Rainy Day Fund and the Water Quality Improvement Fund, the appropriation in the “skinny” budget bill enacted last spring, and the amount required to fund the Pass Through Equity Tax previously enacted, the net general fund balance available at the end of FY 2023 was approximately $2.4 billion. Continue reading →