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Published on Monday, December 12, 2016

Governor’s budget expected this week

By law, the Governor must release his proposal for a balanced state budget no later than December 20. We are expecting to see that budget sometime this week.

For the state’s two-year biennium beginning July 1, 2017, the operating budget is expected to be about $80 billion. Although state revenue has been coming in higher than expected, the state is still short of funding its existing services by an estimated $1 billion. This does not include funding for basic education as required by the McCleary decision (estimated by the Governor’s office at $3.5 billion), state employee collective bargaining agreements (estimated at $700 million), or any new services or programs, such as ones seeking to address growing issues with homelessness and mental health.

The Governor’s budget is likely to employ a three-prong strategy of reducing expenditures, fund transfers, and new revenue. When it comes to cuts and transfers, we can expect everything to be under consideration, including programs and revenues important to cities.

Shortly after the Governor releases his budget, we will post our analysis of impacts to cities here.

Categories: Budget & finance