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 โAdditional Taxpayer Reliefโ 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.ย 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 โskinnyโ 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. (more…)




by Kerry Dougherty

by Shaun Kenney




by Shaun Kenney
by A.L. Schuhart

