The Spending Affordability Committee (SAC), composed of members of the General Assembly and two public members, recently recommended that the fiscal 2019 budget as introduced by the Governor and approved by the General Assembly eliminate the structural deficit by 100%. The structural deficit is estimated to be $298 million for the fiscal year beginning July 1, 2018. In addition, SAC adopted language that will allow it to revisit this limit once the impacts of federal tax changes and spending cuts are evaluated.
Other recommendations included:
- Maintaining a Rainy Day Fund balance of at least 5.0% of estimated revenue, and authorizing the use of any funds above that balance to address imminent cash shortfalls in fiscal 2018 and 2019
- Ending fiscal 2019 with a balance of at least $100 million in the General Fund; SAC reserves the right to revisit this limit once the impacts of federal tax changes and spending cuts are evaluated
- For the capital budget, the committee recommended authorization of $1,075 million in new general obligation bonds for the 2018 session.