House Republicans unveiled our proposal to balance the $5.1 billion shortfall Wednesday, April 6.
Read the press release here: House Republicans unveil their alternative operating budget proposal
We used 13 Principles to guide the decisions we made to craft our budget:
- Sustainable
- No use of one-time money for ongoing programs
- No transfers from other budgets
- Strong reserve to meet unforeseen emergencies or revenue drops
- Protect constitutional mandates
- Transparency — no gimmicks
- Utilize priorities of government
- Reflect priorities of governing board
- Minimize legal disputes
- Seek efficiencies and reforms where cost effective
- No new taxes
- Restrict fee increases to benefit of payer
- Provide flexibility in administration/ compliance
Here's a comparison of our proposal with that of the House Democrats:
- House Republicans spend $543 million less in Near General Fund and $1.04 Billion less in Total Funds.
- House Democrats use over $500 million more in new revenue sources, including $300 million from securitizing liquor distribution proceeds.
- House Republicans leave $833 million in reserves without the additional revenue ($38 million more than House Democrats).
- House Republicans spend $60 million more in K-12 Education and Public Safety, including $30 million more in education reform and $10 million more in increased security at state correctional facilities.
- House Republicans spend $34 million more for the most vulnerable populations in Mental Health, Developmental Disability, and Long Term Care, including full support for DD employment programs.
- House Republicans do not assume a viable bridge to diminishing federal support and eliminate ongoing funding for temporarily unemployed people in General Assistance and subsidized families on the Basic Health Plan ($465 million savings from House Democrats).
- House Republicans limit fully subsidized medical coverage to children who are eligible for federal Medicaid due to citizenship status ($50.5 million savings from House Democrats).
Why is the House Republican budget a more credible, trustworthy proposal?
Beyond ‘dollars & cents’ – sustainability, prioritized spending, no gimmicks
1) The House Republican budget makes more reforms and is more sustainable. It leaves $833 million in reserves, vs. $795 million in D proposal ($38 million more);
o It leaves $100 million in the state’s rainy day account;
o It doesn’t include the very expensive “catch-up” for I-728/732 – more promises not being kept;
o Eliminates expensive or unnecessary programs/agencies (GAU, BHP, State Printer) in order to protect high-priority services in K-12, public safety and services for the most vulnerable.
2) The House Republican budget prioritizes education, public safety and the most vulnerable citizens.
o Protects education - $30m more in K-12 without eliminating $6m in school food program;
o Protects communities - no early release for criminals and rather than reduce corrections staff, our budget includes $10m more for increased security at state correctional facilities;
o Protects the most vulnerable - no reductions for developmentally disabled employment programs and no cuts to Medicaid funding;
o Protects nursing homes - increase in rates goes entirely back into the care they receive.
3) The House Republican budget does NOT rely on budget gimmicks, such as:
o Securitization of the state’s liquor distribution center ($300m in House D budget). The state will pay about $64 million per year for the next 20 years in order to get an upfront payment of $300 million (27 percent return on investment).
o $240 million in K-12 apportionment delay. This not only makes the 2011-13 budget “problem” bigger, it fundamentally means the 2009-11 budget was not balanced – we didn’t live within our means, once again.
o Counting the same REET money in both the operating and capital budgets.