The Williams Report
The governor will have to run in the state through executive action if the budget is not passed by June 30.
Illinois: Must Dig Itself Out Of The Fiscal Ditch
S&P downgraded the credit rating to near junk, the legislature must take decisive action to bring the state out of the credit nightmare.
The governor signed the new budget that includes $1.2 billion in income tax increases over two years.
The Louisiana budget leaves a little over $200 million unaccounted for, which could easily lead to fiscal problems this year.
The bill would have raised the tax by 17 cents per gallon.
The Governor and House Republicans want to roll back the additional 3 percent tax on households making over $200,000 that was put in effect on Jan. 1 after a voter referendum.
The largest piece of the budget is the education spending at $16.6 billion.
This revenue will be generated through a series of taxes on the marijuana industry. The initial proposal was to direct the new income to public education, but it will go towards the “rainy day fund.”
The new two year budget includes a one year Medicaid freeze favored by conservatives that may cause a showdown with the governor.
Pennsylvania: Rep. Grove Frustrated by Last-Minute Budget Dealing
As the Governor calls for a $570 million increase in spending, the House is proposing a nearly $246 million decrease.
Pennsylvania: Tax and Revenue Package May Need Extra Innings
Though the budget will most likely be complete on time, the revenue package will take time to complete. There is a $2.2 billion hole that must be accounted for while the governor runs the state for 10-day window.
Rhode Island: Rhode Island Senate Takes up $9.2 Billion Budget Plan
This budget includes a trial run for tuition free college and some, “General government cuts” in order to make up a $134 million shortfall.
Tennessee: Sales Tax on Groceries Going Down
The sales tax will decrease from 5 percent to 4 percent effective July 1.
Both gasoline and diesel taxes will increase by 4 cents per gallon.
Governor Abbott signed the $219 billion budget after vetoing $120 million in line items.
Will the new budget’s education funding meet the state Supreme Court’s McCleary decision?
West Virginia: State Auditor Claims New Fiscal Year Will Start With “No Ill Effects” From Late Budget Passage
Passing the budget late will not hinder the implementation of the budget, according to the state auditor.
Proposed income tax cuts and sales tax increases fail to be included in final bill. Gas tax increases by 3.5 cents per gallon. Four-year public higher education spending reduced by 2.4 percent.
Wisconsin: Key Issues Holding up State Budget
Republican leaders in the Assembly and Senate still need to work out the overall tax package, with special attention to early education and transportation spending.
Cumulatively, states are putting in under one tenth of the required funded to keep liabilities from growing.
National: The Time for Pension Reform is Now
State and local unfunded liabilities are now $5.6 trillion (according to Unaccountable and Unaffordable 2016), states must act quickly to reverse the substantial debt.
Many cities are paying in the 40 percent range and the city of Bisbee is paying 134 percent of an officer’s salary in pension liability costs.
California: Lawmakers Advance Pension Borrowing Plan
The California Public Employees’ Retirement System only has enough funding for two-thirds of itself. This plan is to borrow money and invest into CalPERS.
In December, the assumed rate of return was lowered to 7.25 percent from 7.5 percent.
This deal freezes public wages for three years in a row in an attempt to lessen the projected two year debt of $5 billion. This deal can only hope to save $1.5 billion.
New Jersey’s pension system is among the worst funded. This $13.5 billion only slightly mitigates the $235 billion in unfunded liabilities (as estimated by Unaccountable and Unaffordable 2016)
Democrat leaders concluded that they have given up trying to make major changes to the corporate tax this session.
Pennsylvania: Proposal to issue pension obligation bonds (POBs) threatens to unravel recent pension reform victory
Pennsylvania is taking a long term approach to reducing unfunded pension liabilities while reducing the risk to taxpayers.
Governor Abbott signed a Dallas police and firefighter pension reform to stave off insolvency.