Supplemental budget approval

Supplemental budget

AFA had a budget terminology and concepts briefing with Commissioner Figeroa on Thursday.

All policy committees reported back to AFA on LD 1000, the supplemental budget.

Deviations from the recommendations of the Governor are:

  • EUT- unanimous rejection of moving the remains of Cost Recovery Fund (biomass) $5M to the General Fund
  • CRJ- unanimous rejection of the language eliminating Downeast Correctional Facility and creating the Washington County prerelease center. They understand that a standalone bill is forthcoming
  • EDU- a sole House Republican dissented from a vote approving the Governor’s recommendation for $1M for the bicentennial celebrations
    • The committee also recommends starting 3 positions established in the biennial budget a full quarter early at a cost of $83,540.

Thursday afternoon AFA unanimously approved the supplemental budget endorsing the recommendations of the policy committees but for:

  • Requiring the administration to fund two of the positions requested by Education committee using funds initially proposed for the State Library and the Historic Preservation Commission this fiscal year, intending to fund all the positions in the upcoming biennial budget.
  • Ensuring the Cost Recovery Fund not lapse to the Budget Stabilization Fund at the end of the fiscal year and that it not be transferred without prior legislative approval. It is acknowledged that this unbalances the proposed biennial budget by nearly $5M.

Biennial budget

Public hearings on LD 1001, the biennial budget, begin Monday and continue through Wednesday, March 27.

Monday-Wednesday AFA is joined by the HHS committee to hear the portions of the proposed budget related to the Department of Health and Human Services.

Thursday Criminal Justice joins AFA.

January Revenue report

January revenues are under budget by ($4.9M) and GF revenues are $8.1M for the year. This follows the upward revenue reforecast of $99M for FY19.

December sales were ($1.9M) under budget.
Individual income tax revenue was ($14.7M) under budget.

Income tax variations are in estimated payments and are thought to be the result of the Trump tax plan and changes in behavior due to the limitation of State and Local Tax (SALT) deductions. It is expected that this will true up with final payments in April.

The January revenue report strikes a positive tone overall.

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