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Actions & Proposals to Balance the FY 2010 Budget:  Across the Board Budget Cuts & Other Miscellaneous Cuts

(Pre & Post-Enactment)

In December 2009, The National Conference of State Legislatures (NCSL) released its State Budget Update: November 2009. The report shows that states closed budget gaps in excess of $145 billion while crafting their FY 2010 budgets only for a new round of shortfalls to open totaling $28.2 billion.  In light of these budget gaps, NCSL has compiled this series of tables that document the measures, both proposed and enacted, that states are taking to close their budget gaps. States are taking a variety of approaches to close their budget gaps and the approaches include both cutting budgets and generating new revenues.
 

Actions & Proposals to Balance the FY 2010 Budget: Across The Board Budget Cuts & Miscellaneous Other Cuts
 
Across the Board
Other Cuts
State
Yes
Amount in Millions
Percent of General Fund Budget
Exemptions and Comments
Comments
Alabama
P
 
3%
The state finance director has told state agencies to expect 3% less money than they were appropriated for the first 9 months of FY 2010.
Post-enactment of the budget, the Governor has ordered a proration of 7.5% for the FY 2010 education (both the K-12 and the higher education) budget.  
Alaska
 
 
 
 
 
Arizona
 
 
 
 
 
 
 
 
 
X
 
 
 
 
 
 
 
 
 
 
$200
 
 
 
 
 
 
 
 
 
7.5%
Post-enactment of the budget, the governor’s office has announced that there will be additional cuts to state funding in FY 2010. The governor has asked all state agencies to report the impact of a 15%-20% cut to their FY 2010 budgets to the governor.

Post-enactment of the budget following another special session in December 2009, the governor approved across-the-board agency cuts of 7.5 %, which may result in a 5% pay cut to various agencies. 100 special-purpose funds will be cut by nearly $6 million.
Enacted budget allows the Department of Economic Security to reduce income eligibility for subsidized child care. About 7,000 eligible families, who earn up to 165% of the federal poverty level, are currently on the waiting list.
As a part of the enacted budget, the Department of Transportation must cut more than $100 million from their annual budget cuts. To implement these cuts, the state is closing 13 of the 18 rest stops in the state.
A welfare program for disabled people waiting for Social Security benefits has been eliminated.

Post-enactment of the budget, during a special session in November, lawmakers cut $423 million from the enacted budget which included $130 million in revenue changes by instituting a one-time, $73 million accelerated deposit of unclaimed property into the general fund and $28 million from revenues generated from a 5-year vehicle license tax renewal option. In addition, $293 million in spending cuts include: $137 million in future capital expenditures from K-12 education and $155 million from the Department of Economic Security's social services programs, $25 million of which is a one-time cut.
 
 
Arkansas
X
$100
2.2%
Post-enactment of the budget, the governor has ordered cuts of 2.2%. K-12 education is exempt from the cuts.
 
California
 
 
 
 
As a result of the failure of five ballot measures in a May 2009 special election, the governor has called for selling off certain state properties.
 
July enacted budget, combined with the Governor's post-signing budget vetoes, cuts $14.2 million in funding to the state park system. The state parks system has implemented increased fees to raise more revenue. While administration officials initially announced that the funding cuts would lead the closure of 100 of the 279 state parks, the parks administration was able to find significant cost savings and there will be no park closures. Instead, many parks will see reduced visitor hours.
 
Lawmakers have proposed avoiding additional closures by instituting a $15 increase to the annual vehicle license fee. This fee would allow California-licensed vehicles free admission to state parks.
Colorado
 
 
 
 
Post-enactment of the budget, governor has ordered $3 million cut from the state parks budget. Also, the governor has ordered reductions to the state commuter program, which allows certain employees to use state vehicles for transportation between work and home.

Post-enactment of the budget, governor has eliminated $1 million in state funding to the Tony Grampass Youth Services Grant Program.

Post-enactment of the budget, the governor has eliminated severance tax grants to local governments, saving an estimated $37.4 million.

Post-enactment of the budget, the governor has cut $14.2 million in Clean Energy Fund grant money for state residents to add alternative-energy or energy-efficiency devices to their homes.
Connecticut
 
 
 
 
 
 
 
 
 
 
Enacted budget cuts $45 million in state aid to local governments.
 
Failed: Governor proposed a $5.1 million cut from school, public, and university library funds annually for the next two years.
 
Post-enactment of the budget, in November, the governor proposed a 3% funding cut to municipalities which could lead to property-tax increases and decreases in local government services. The governor’s office has also proposed taking monies dedicated to various state accounts: the Citizens Election Funds, the Stem Cell Research Fund and the Dept. of Environmental Protection. The governor also proposes cuts to after-school and school-based health programs.
 
Failed: Following a special session, the general assembly rejected the plan to cut aid to cities and towns by $84 million and blocked plans to cut funding from stem cell research, school-based health programs and after school daycare funding identified in the governor’s deficit-reduction proposal.
 
 
Delaware
 
 
 
 
 
Florida
 
 
 
 
 
Georgia
X
$900
3-5%
Post-enactment of the budget, the governor has ordered across-the-board cuts. Public schools and Medicaid will face a 3% reduction while most agencies will face a 5% budget cut.
Lawmakers cut $10 million from the state parks budget.
Hawaii
 
 
 
 
House lawmakers have proposed eliminating the Career Kokua program from the state Department of Labor. Federal stimulus funds and state special funds are being used to maintain this program.
 
The Office of Hawaiian Affairs budget has been reduced by 20%.
Idaho
X
$100
2.5%-7.5%
Post-enactment of the budget, the governor has ordered $100 million in holdbacks of funding from the general fund. Critical or constitutionally required services such as the state police and corrections face cuts of 2.5% to 5%. Essential services, such as colleges and universities received a 6% holdback. Other general fund agencies were cut 7.5%. K-12 education was protected from cuts by the governor using $49.5 million to make up what would have been cut in the state’s public education stabilization fund.
The Dept. of Water Resources' funding was reduced by 16.3%.
Officials have asked the local Native American tribe to take over the upkeep on a state park for which funding has been cut.
Governor has proposed cutting funding for state parks from $16 million to $7 million.
Illinois
 
 
 
 
Governor has proposed across the board reductions in grant programs, excluding health care and education programs.
Lawmakers have proposed reducing payments to foster parents and families.
Indiana
X
 
10%
Post-enactment of the budget, the governor ordered an across-the-board reduction of 10% for all state agencies.
 
Iowa
X
 
 
 
 
 
$564.4
10%
Post-enactment of the budget, the governor ordered an across-the-board cut of 10% to all government offices that receive money from the state’s general fund.
Post-enactment of the budget, the governor ordered across-the-board budget cuts of 10%, resulting in a cut of $8.9 million from the Department of Public Safety.
 
The legislative and judicial branches have announced
reductions to their budgets of 10.0% and 7.1%, respectively, resulting in a total statewide reduction of $579.1 million.
Kansas
X
 
 
 
 
 
 
 
3.3%
Public universities and K-12 education will see cuts of approximately 2.6%
House lawmakers passed legislation that would dock their pay by 10%.
 
Post-enactment of the budget, the governor announced an additional funding cut of $36 million for K-12 education and a $2 million cut to higher education. The governor also cut an additional $3 million from the state court system and cut $2million to the attorney generals office.
Kentucky
 
X
 
 
 
 
 
 
 
 
 
 
 
 
X
$80
 
 
 
 
 
 
 
 
 
 
 
 
 
4.0%
 
 
 
 
 
 
 
 
 
 
 
 
6%
Post-enactment of the budget, the governor has ordered cuts of 4% for most state agencies. Exemptions: K-12 education, higher education, the Medicaid program, mental health services, the state police, career and technical education, adult education programs, and Kentucky Educational Television. Health and Family Services will be cut by 1%, corrections will have to cut $4 million.

 
Post-enactment of the budget, in Dec. 2009 the governor ordered across-the-board cuts of 6% in most state agencies.
 
Louisiana
 
 
 
 
X
 
 
 
 
 
3%
 
 
 
 
Post-enactment of the budget update 12/22/09: In an effort to close a $247.9 million budget gap, the governor announced a 3% across-the-board agency cut. Agencies will submit budget reduction plans by January 2010. 
Governor has proposed cutting $13 million from the Department of Culture, Recreation, and Tourism. This cut would lead to all state historical sites being closed, except for weekends.
 
Scheduled post-enactment budget cuts announced include:  $108 million from the Dept. of Health and Hospitals resulting in reduced Medicaid provider rates; $2.5 million for Louisiana Health Care Services; $84 million from higher education funding; $16.1 million for special school and commissions, $1.7 for economic development ; $1.6 million for the agriculture department; $2.2 million from the culture, recreation and tourism department; $2.2 million from the Department of Social Service; $1.6 million from the secretary of state and $2.7 million from public safety agencies.
 
Maine
X
$63
 
 
On November 20, governor issued a curtailment order to state agencies to cut $63.1 million from their FY 2010 budgets. The curtailment order is temporary until a supplemental budget is reviewed by the legislature
Maryland
 
 
 
 
Post-enactment of the budget, the Board of Public Works has approved cutting $5.5 million from the Maryland Lottery’s advertising budget and $1.1 million from the state’s tourism budget.
 
Post-enactment of the budget, the Board of Public Works has approved cutting $211 million in aid to local government.
Massachusetts
 
 
 
 
Enacted measure cuts of up to 15% in local government aid. 
Michigan
X
 
10%
Enacted budget cuts 10% from most state departments.
Legislative conference committee agreed to cut state funding to libraries from $10 million to $6 million for FY 2010.

Enacted budget cuts revenue sharing to local governments by 11%.

Governor has proposed cutting the refundable film tax credit to 37%, down from 42%. A bill passed by the Senate would cut the reimbursement rate to 39%.

Governor has proposed cutting other tax credits by $130 million in 2010 and $156 million in 2011.

Governor has proposed eliminating state aid to the horse racing industry and to the arts.

Governor vetoed $7 million in funding for the state fair, effectively closing the fair after 161 years of operation.
Minnesota
 
X
 
 
 
3%
 
Local government aid is to be cut by $300 million.
Post-enactment, the governor has instructed agencies to hold back 3 % of their budgets until the legislature reconvenes in February and considers balancing measures.
Mississippi
X
$54.3
3%
Post-enactment of the budget, the governor announced a 3% across-the-board agency and program reduction scheduled for February 2010.
 
 
Missouri  
P
$80
2.5%, 5%
Post-enactment of the budget, the governor has proposed across-the-board reductions of 2.5% for the current year and 5% for FY 2011 to most state agencies. Reductions to higher education would be smaller to comply with ARRA requirements. Exemptions: 24-hour care facilities, the protection and safety program at the Department of Health and Human Services, the Beatrice State Developmental Center, and funding for services for individuals on the Developmental Disabilities waiting list.
Post-enactment of the budget, the governor has cut $16 million from the Department of Social Services.

The Division of State Parks laid off 100 of its 700 workers because of reduced sales tax revenue.
Montana
 
 
 
 
 
Nebraska
X
 
2.5%
Following a special legislative session in November, the governor approved an across-the-board agency reduction of 2.5%. The Judicial branch and court system funding was only reduced by 1.5%.
The Game and Parks Commission has reduced services at 28 state recreation areas.
Post-enactment of the budget, the governor cut funding to the Jobs Training Assistance Fund by $3 million.
Nevada
P
 
 
In December, the governor asked all state agencies and the Economic Forum to study and report the impact of a 1.4%-3% cut to their FY 2010 budgets . No cuts have been implemented yet.
Lawmakers have cut the state parks budget by 21%, or $3.2 million.
New Hampshire
 
 
 
 
Proposed reductions in two local government aid programs.
New Jersey
 
 
 
 
 
 
 
 
 
 
 
 
Governor proposed cutting $500 million in homestead rebates.
The governor's proposed budget included $4 billion in baseline spending cuts, with more than 850 line items being cut.
Enacted budget cuts contribution to the state pension fund by $940 million for FY2010.
Enacted budget decreases aid to cities and towns by $31 million.
Post-enactment of the budget, the governor announced a freeze on of $20.6 million in previously funded state aid to municipalities.
New Mexico
X









 
$100
3%
 
 
 
 
Proposed post-enactment cuts to the budget, K-12 education exempt.



 
Taking final action on the special-session legislation, the governor signed an executive order that further cuts state agency budgets by an average of 7% for FY 2010.
 
The governor also ordered a statewide mandatory, 5-day furlough plan effecting about 17,000 state employees, but providing limited exemption for around 4,100.





 
Post-enactment of the budget, the governor has proposed diverting $135 million in available short-term bonding proceeds from future capital projects to operations. This plan would de-authorize between $60 million and $75 million in previously appropriated capital outlay projects. The governor proposes splitting the cuts equally among projects that had been sponsored by the governor, the Senate, and the House.  Update 11/12/09: The governor froze $150 million in capital outlay projects.

 
New York
 
 
X
 
 
$485
 
 
11%
Post-enactment of the budget following an extraordinary session, the governor approved an across-the-board reduction of 11% to agencies non-personnel services budgets
 
The state parks budget has been cut by $28 million in comparison to FY 2009 funding.
Post-enactment of the budget, the governor had proposed cutting undistributed local assistance grants by 10%. Later, the legislature passed and the governor approved a 12.5% reduction. Other cuts include: 5% aid to SUNY, CUNY and community colleges, 5.4% to Office of Mental Retardation and Developmental Disabilities,; and a $107 million cut in health care actions. Several one-time reduction measures include: $200 million from the Battery Park City Authority, $90 million from the Regional Greenhouse Gas Initiative, $10million from the EPA Fund and $26 million from the Dormitory Authority.
Post-enactment of the budget: following the extraordinary session, the governor announced delayed payments of $750 million for December. Scheduled payment assistance to school districts and municipalities will be reduced by 10%, payments for property tax relief, county human services and insurers who provide fringe benefits to state employees will have payments reduced by 19%. 
North Carolina
 
 
 
 
 
North Dakota
 
 
 
 
 
Ohio
 
 
 
 
Proposed reduction of funding to the Ohio Lottery Commission by $102.8 million (23%) and the Dept. of Development by $193 million.
 
Office of Budget and Management will shift debt service payments currently scheduled to be paid in the FY 2010-2011 biennium to later biennia.
 
Enacted budget reduces eligibility in Ohio's subsidized child-care program to 150% of the federal poverty level from 200%. The new cap only applies to new applicants.
 
Enacted budget cuts state funding to libraries by 31%.
Oklahoma
X
 
 
 
 
 
 
 
X
 
5%
 
 
 
 
 
 
 
5%
State Board of Equalization ordered an across-the-board reduction of 5% to the monthly allocation to state agencies for the months of August and September 2009.  School allocations were cut by 2.7% in August and 4.4% in September.
 
Post-enactment of the budget, in December the governor ordered an additional 5% across-the-board agency budget reduction.
 
 
 
Oregon
P
 
5-10%
In November, legislative leaders requested all state agencies to submit plans to cut their budget by 5-10% in the event that voters reject two measures that repeal tax hikes during the January 2010 referendum election.
 
Pennsylvania
 
 
 
 
Enacted budget cuts funding to the Department of Labor and Industry by $29 million, or almost 25% of its budget.

Enacted budget cuts funding to Conservation and Natural Resources by 19%.

Enacted budget cuts funding to the Department of Environmental Protection by nearly 27%.
 
Enacted budget cuts funding to the Department of Community and Economic Development by 11%.

Enacted budget cuts funding to the Historical and Museum Commission by more than 50%. This cut includes eliminating the entire Public Television Network’s total state subsidy of $11.3 million.

Enacted budget cuts the state Senate’s budget by 9.6% and cuts the House of Representative’s budget by 3.8%.

Failed: Lawmakers have proposed to eliminate or suspend the state's tax credit for filmmakers.
Puerto Rico  
 
 
 
 
 
Rhode Island
X
$67.8
5% for FY 2010
2.5% for 2nd half FY 2010
Enacted budget cuts 5% across-the-board for all of FY 2010 and an additional 2.5% for the second half of FY 2010.
Enacted budget cuts $55 million from local government aid.
South Carolina
X
 
X
$1400
 
$200.5
 
 
4.4%
 
 
Post enactment of the budget, the state Budget and Control Board ordered 4% across-the-board cuts.
The House has cut its budget by 20%.
 
Post-enactment of the budget: On December 15, the Budget and Control Board recommended a minimum 2.6% additional reduction that is estimated to save the state $122.4 million. The planned cuts include: $53 million from state public schools/colleges, $20 million from Medicaid programs; at least $3 million form the Dept. of Social Services and $8.3 million from the Dept. of Corrections.
South Dakota
 
 
 
 
 
Tennessee
P
 
3.5%
3.5% to be cut in the first year. 12% planned to be cut over 3 years. Education is to be exempted from the cuts.
Governor has proposed eliminating a tax break for commercial rental properties owned by family-owned businesses which will generate $25 million.
Texas
 
 
 
 
 
U. S. Virgin Islands
 
 
 
 
 
Utah
 
X
 
9%
The FY 2010 budget declined from anticipated levels by around 9% on average. Public education saw a decline of 5.2%.
The state parks budget has been reduced by 15 percent. The parks budget was already cut by 3% in a special session this year.
 
Vermont
 
 
 
 
 
Virginia
 
X
 
X
 
5% to 7%

15%
 
 
Post-enactment of the budget the governor has implemented budget cuts, which include eliminating 1,000 jobs, closing three prisons and cutting aid to colleges.
Post-enactment of the budget, the governor will cut state support to sheriff’s offices by about 5%.
Construction projects worth $400 million will be paid for by borrowing instead of pay-as-you-go financing.
Post-enactment of the budget, the Commonwealth Transportation Board approved a plan in December that cuts $88.7 million from the Virginia Department of Transportation programs and services before the end of FY 2010.
Washington
 
 
 
The governor has asked all state agencies to report the impact of a 2%-5% cut to their FY 2010 budgets to the governor. This cut has not yet been implemented.
Enacted budget calls for the sale of the airplane owned by the Department of Natural Resources.
West Virginia 
 
 
 
 
Governor has proposed a temporary tax-like assessment on both employers and employees if the state's unemployment compensation fund drops below $180 million.
Wisconsin
X
 
1%
Across the board cuts of 1% for state agencies were imposed, though some agencies were cut by an additional 5% or more
 
Wyoming 
X
 
10%
Applies to “most state agencies.”
 
Key:
(N/A) = Not applicable
 
X= Action taken
 
P = Proposed
 
Source: NCSL survey of state legislative fiscal offices: June and November 2008. Various media and government outlets: January through December 2009.
 
This table is intended to provide general information and does not necessarily address all aspects of this topic. The table reflects in summary form information gathered from media sources and NCSL surveys of legislative fiscal offices. Please contact us at budget.revenue.updates@ncsl.org if you know of any additional information that should be reflected here or any errors that should be corrected.

 
 

 

 

This report has been updated under a partnership project of NCSL’s Fiscal Affairs Program in Denver, Colorado and the Pew Center on the States, based in Washington, D.C.
  

 

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