The Center for Public Policy Priorities (CPPP) has published a report that analyzes some of the proposed cuts in health and human services, workforce and economic development, and higher education.CPPP recommends “a balanced approach that uses the Rainy Day Fund and new sources of state revenue—not just budget cuts alone—to balance the state budget.”
The report notes:
The proposed cuts are currently being reviewed by state leadership, who will inform state agencies which cuts will be implemented in fiscal 2010. Cuts for fiscal 2011 would be made in a supplemental appropriations bill enacted by legislators in the 2011 regular session. (Any cuts requiring a change in state law might also require other enabling legislation.) Leadership’s goal is to find enough cuts from the 5 percent proposals to eliminate any budget deficit for 2010-11, currently estimated at $1.7 billion in general revenue. Most of this ($1.3 billion) is due to higher-than-budgeted Medicaid caseloads, but shortfalls are also expected in state employee health care ($142 million All Funds); prison health care ($88 million); the Children’s Health Insurance Program ($72 million); and TANF cash assistance ($30 million). The 2010-11 shortfall amount does not include additional budget deficits that may arise if local property value and tax collections are less than what was assumed in school finance formulas.