[StBernard] Session Dominated By Finances

[Westley Annis]

State Financial Outlook Uncertain
 
The 2010 Regular Legislative Session is into its fourth week and so far has
been dominated by financial matters, namely the effect of the drop in
revenues on the state budget.  The Revenue Estimating Conference recently
met and reported a shortfall of nearly $300 million for the current budget
year due to lower than expected revenues for 2010.  This adds continuing
pressure to a budget that has already been paired over recent years.  
 
The good news is that there are no tax increases on the horizon in response
to the budget deficit.
 
 
House Passes Bill for Increase Notice on Millage Rollups
 
HB 771, which I authored, passed the House this week to provide additional
notice on millage rollups.  The bill requires that notices for proposed
millage rollups contain the following information:

*	An estimate of the increase in the amount of tax revenues to be
collected in the next tax  year from the increased millage as compared to
the amount of tax revenue for the current year. 
*	An estimate of the dollar value increase in the tax on residences
within the tax district which are valued at one hundred thousand dollars,
one hundred fifty thousand dollars, and two hundred thousand dollars. The
increase in taxes shall be the amount attributable to the millage increase. 
*	For purposes of the Internet publication only, the notice shall
contain a recitation of the current budget of the taxing authority and the
proposed use of new revenues derived from the increased millage. 

 
Flash Poll
 
The present constitution permits up to 1/3 of the Budget Stabilization Fund,
subject to 2/3 approval of each house of the legislature, to be incorporated
in the next fiscal year's official forecast if revenue estimates for the
next fiscal year are less than the official forecast for the current fiscal
year. 
 
Proposed constitutional amendment permits up to 1/3 of the Budget
Stabilization Fund, subject to 2/3 approval of each house of the
legislature, to be incorporated in the next fiscal year's official forecast
if a decrease in federal financial participation in state assistance
expenditures for health or social services programs, including Federal
Medical Assistance Percentages, creates a projected deficit for the next
fiscal year, the difference between the current fiscal year's federal
financial participation and the ensuing fiscal year's projected federal
financial participation, not to exceed 1/3 of the fund, shall be
incorporated into the official forecast. 
 
Do you favor or oppose the expanded use of "rainy day" money?
 
Thanks,
Tim