The House targets provide an indication of how the House will address the projected state budget surplus.
(Published Mar 18, 2014)
The House Ways and Means Committee amended and approved their supplemental budget targets on Monday for the balance of the 2014 legislative session. The targets will be used to guide individual committees as they develop their supplemental fiscal year (FY) 2014-2015 budget bills.
The targets include $46.4 million of additional tax relief and tax program spending for the balance of the FY 2014-2015 biennium. The Tax Committee target previously was amended to include $503.6 million in tax relief and federal conformity modifications. That bill has yet to be acted on by the Senate.
The targets also include $132.7 million in additional capital investment spending, which includes approximately $125 million in one-time capital projects essentially funded with a portion of the state’s $1.233 billion projected surplus. The balance of this spending target is largely for additional debt service for a bonding bill of approximately $850 million.
For education, the targets would increase state spending by $71.5 million while the other major changes in the target are $75 million for health and human services programs, $50 million for transportation programs and $39 million for jobs and economic development programs. Based on discussions among House members, we believe that roughly $25 million of the jobs and economic development target will be used for a yet-to-be finalized broadband initiative.
The targets do not specifically address an increase in the state’s budget reserve but the targets leave roughly $195 million of the projected surplus unspent and undedicated.
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