The House Appropriations Committee was briefed by the Department of Legislative Services (DLS) on potential reductions to address a revenue shortfall of $200 million to $350 million they are expecting to be announced next week.
The House Appropriations Committee is supposed to finish its work on the Hogan administration’s $46.6 billion budget March 8. The day before that, the Board of Revenue Estimates is likely to write down revenues for both fiscal 2019 and 2020 by $200 million to $350 million, David Romans of the Department of Legislative Services told committee members Tuesday.
Besides delaying the [state employee] pay raises until January ($70 million), DLS recommendations also include delaying pay hikes for health care providers ($36 million), reducing the Rainy Day Fund by $90 million, and cutting $76 million from the amount budgeted for debt service on state bonds. That last move that would force the Board of Public Works to raise the state property tax rate so that it would not default on its bonds.