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Published on Monday, April 18, 2016

AWC state budget update

On Monday, April 18 the Governor took action on the supplemental operating budget passed by the Legislature on March 29. AWC is very appreciative of the leadership the Governor showed in vetoing several items of significant concern to cities.

  • Fire Insurance Premium Tax distributions: The Governor vetoed Section 920 of the supplemental budget, which imposed new eligibility requirements for the 44 cities that receive a share of the state’s Fire Insurance Premium Tax. AWC, many cities, fire departments, legislators, and others requested this veto because the new requirements would have reduced or eliminated the distribution to most cities in FY 2017. Read AWC’s letter asking for the Governor’s veto here.
  • Public Works Trust Fund: The Governor vetoed additional sweeps to the Public Works Trust Fund in the next biennium. AWC previously expressed disappointment with the Legislature for passing additional sweeps and asked the Governor and Legislature to recommit to working with us on funding local government infrastructure. Read AWC’s letter to the Governor and legislative leaders here.

In addition, a number of city officials raised concerns about a $10 million diversion from the State Auditor’s Office Performance Audit funds. The Governor also vetoed this provision with agreement that the State Auditor will only spend $5 million this biennium and return the remainder to the state’s general fund.

Read more about the Governor’s budget action here.