The Legislative Budget Board (LBB) met today, January 11, 2019 to discuss setting the constitutional spending limit on certain appropriations for the 2020-21 biennium. The LBB was provided 5 updated forecasts on the estimated growth rates in their memorandum, which ranged from 8.11% to 13.06% on the 2018-19 base of $91.2 billion.
Subsequently, the LBB unanimously approved a motion to adopt the estimated rate of growth of 9.89% to a base amount of $91.2 billion which sets the limit of certain appropriations for the 86th Session at $100.2 billion, without concurrent resolution and subject to adjustments appropriated to the last biennium.
During the December 1, 2016 LBB meeting, before the start of the 85th Session, 5 forecasts were provided to the LBB ranging from 9.99% to 11.44%. At that time the LBB unanimously approved a motion to adopt an even lower estimated rate of growth of 8% to a base amount of $92.5 billion which set the limit of certain appropriations for the 85th Session at $99.9 billion.
Traditionally, the LBB meets at the end of the year to set to their cap. This year lawmakers met in November to hear preliminary details but declined to set the cap during that meeting. Additionally, this year the Biennial Revenue Estimate (BRE) was published prior to the LBB setting the cap, the BRE provides lawmakers the other part of the equation which provides the amount the state can expect to have for general purpose spending – $119.1 billion.
Documents:
- Memo to Board Growth Rate Update – January 11, 2019
- Spending Limit Update – January 11, 2019
- Memo to Board on 2018 -19 Spending Limit Update – November 16th, 2018
- Technical Memorandum for Legislative Budget Board Meeting – November 16, 2018
- Report on State Fiscal and Economic Conditions, Supplemental – November 16, 2018
- Memo to Board on Growth Rates of the State’s Economy and Technical Memorandum – November 16th, 2018