Some candidates for governor and the Legislature predicted next year’s budget gap would be $100 million or more, but Dilges (state budget director Jason Dilges) said he doubts the gap will be that large.
The 2013 budget year, which begins in July 2012, will be particularly difficult because all stimulus aid will have ended, which means state money will have to be used to replace federal money that has helped balance the budget in the past three years, Dilges said. Ongoing state revenues are not covering ongoing state spending, he said.
“Some day we’re going to come to the realization that we have no stimulus left and we either need to reduce our expenditures or we have to increase our revenues,” Dilges said.
The clock is ticking and we either need to come up with a way to bring in more revenue or cut expenses, before the ‘gift’ of the stimulus aid runs out.
In preparing his budget request, Rounds asked all state agencies to consider asking for 10 percent less than they are authorized to spend this year. Dilges said some agencies were able to meet that request, but others were not because they run federal aid programs that cannot be cut.
MikeH started a discussion about some of the programs that the stimulus help fund these past few years.
Here is link to the current years’ budget as the Governor proposed it.
What do we cut? How do we increase revenue?