The Legislature enacted the FY 2017 budget in particularly challenging circumstances. Towards the end of the process, the goalposts moved when new projections indicated that there would be $750 million less in tax revenue in FY 2017 than had been assumed throughout the budget process. The new projections required substantial changes by the conference committee that was negotiating the final budget. The final budget includes some cuts below the levels that had been recommended by either the House or Senate, as well as a number of strategies that provide only temporary solutions by pushing costs into future years and underfunding accounts that will eventually need to be funded.

The Legislature managed to provide modest funding increases in a few priority areas, including local aid which receives a 4.3 percent increase, Chapter 70 education aid which is increased by 2.6 percent, and a number of initiatives to address opioid addiction including $8.3 million in increased funding for substance abuse services in the Department of Public Health. 

The budget also cuts funding in a number of areas: the $18.6 million kindergarten expansion grant program is eliminated; funding for the Department of Revenue is reduced by $15.9 million, potentially weakening the capacity to combat tax evasion and ensure the integrity of our tax system; and the budget imposes a 13 percent cut in YouthWorks which provides funding for summer jobs.

How did the Legislature balance the budget in the face of a sudden $750 million shortfall?   Continue Reading