Here’s how one state closed their budget gap
By raiding the trust funds and cutting planned spending, the Legislature came up with about $2.5 billion to close the gap in the $66.3 billion budget. That’s a larger amount than expected because tax collections and other state revenue have continued to decline since the deficit was estimated at $2.3 billion.[Emphasis mine]
No new taxes yet they came up with $2.5 million.
- The Lawton Chiles [former Florida governor and senator] Endowment anti-tobacco fund, from which interest normally pays for child welfare, child and elderly health care programs and anti-smoking efforts, lost $700 million, more than half the assets in the fund.
- A trust fund intended to provide low-income housing lost $190 million.
- They made cuts on schools, universities, health care programs, and the judiciary among others.
Transportation fund? Spared.
The budget deficit increase roughly $200 million since the Florida legislature started working on the budget. Will it increase more in this economy?
Wisconsin’s budget deficit is twice as large.
