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Table 8. Proposed Uses for FY 2006 Unobligated Balances: Tax Relief/Other |
|
State |
Tax Relief |
Other |
|
Alabama |
Tax relief is not being discussed relative to taxes that go to the general fund. Lawmakers probably will do something regarding the personal income tax (which goes to the Education Trust Fund), most likely increasing the threshold at which taxes are required to be paid. |
Although FY 2006 revenue estimates were revised upward significantly, expenditures did not increase significantly above the original budgeted amount. As a result, the FY 2006 surplus is anticipated to be carried forward to FY 2007and is being used to craft the FY 2007 general fund budget. |
|
Alaska |
|
Officials plan to set aside about half the surplus for the future and prefund $565 million of FY 2007 K-12 education costs. |
|
Arizona (N/R) |
|
|
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Arkansas |
Rebates. |
Educational adequacy needs. |
|
California |
|
A substantial portion of the reserve will be needed to fund baseline spending in the FY 2007 budget. Most discretionary increases in FY 2007 are in K-12 education and higher education. |
|
Colorado |
|
The $114.4 million is the amount available within Colorado’s operating budget statutory limit. As a result of the passage of Referendum C, the Joint Budget Committee is recommending the excess be divided, with one-third each going to K-12 education, higher education and health care programs. This money will be used primarily to restore reductions made during the past three years. In addition, because of the structure of Colorado statutes, more money will be available for transportation projects. |
|
Connecticut |
|
Budget Reserve Fund. |
|
Delaware |
|
Funding the capital budget and GASB 45 will encumber any surplus, at least in the near term. The largest increase in the governor’s recommended FY 2007 budget is for Medicaid. |
|
Florida |
|
Nonrecurring carry forward funds will be spent in the normal budget development process, which currently is under way. |
|
Georgia |
|
Fill the shortfall reserve. |
|
Hawaii |
Proposals include increasing the standard deduction amounts; establishing a state EITC; increasing low-income tax credits; changing tax brackets and rates; one time general tax rebates; and numerous other tax credits and exemptions. |
Proposals include capital expenditures to address the backlog of lower and higher education facilities repair and maintenance; affordable housing initiatives; renewable energy initiatives; workforce development programs; an endowment fund for financing new public schools in new housing developments; an endowment fund to support venture capital companies; and transfers to the Rainy Day Fund. |
|
Idaho |
|
Move $70 million into the Budget Stabilization Fund to reach the 5% cap. |
|
Illinois (N/A) |
|
|
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Indiana (N/A) |
|
|
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Iowa |
|
The $117.1 million amount includes $34.3 million in FY 2006 supplemental appropriations, including $20.5 million for Medicaid, $5.2 million for corrections and $4 million for indigent defense. |
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Kansas (N/A) |
|
|
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Kentucky |
|
Not yet determined. |
|
Louisiana |
|
|
|
Maine |
Additional funding of about $40 million is needed to maintain planned increases in the state’s share of K-12 education school funding. |
FY 2006 Medicaid supplemental funding requests and supplemental requests to address other shortfalls will use most of the projected surplus. |
|
Maryland |
The governor assumes enactment of legislation for various tax proposals related to military retirement income, estate taxes, long-term care, veterans organizations and heating upgrades. |
Additional reserves will be used to address a projected revenue shortfall in FY 2008. |
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Massachusetts (N/R) |
|
|
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Michigan |
|
Added to FY 2007 estimated revenue. |
|
Minnesota (N/A) |
|
Because the state budgets on a biennial basis, any surplus is not assigned to a single fiscal year. Although no surplus is attributed to FY 2006 only, there is a surplus of $88 million for the biennium (0.3% of the general fund budget). Intended uses for the surplus in FY 2007 include targeted expenditures, transportation and other capital programs, tax relief and reducing unfunded pension liabilities. |
|
Mississippi |
A proposal was considered to reduce taxes on nonprepared food. |
|
|
Missouri |
|
There are no targeted plans for the surplus, which will be added to the resources identified as available for the FY 2007 budget. |
|
Montana |
|
K-12 education. |
|
Nebraska |
A wide variety has been proposed. |
Utility costs and community corrections. |
|
Nevada |
|
Any surplus generated in FY 2006 will be carried forward into FY 2007. Decisions will be made on use of these funds during the 2007 session, which begins in February 2007. |
|
New Hampshire |
|
|
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New Jersey |
|
The state generally attempts to maintain or increase a surplus when possible. |
|
New Mexico |
|
Public education. |
|
New York |
Various proposals are being discussed. |
Education aid, because of a school finance court ruling. |
|
North Carolina |
|
The legislative session does not begin until May. |
|
North Dakota |
|
K-12 education, deficiency requests related to higher fuel costs, more inmates and more sex offenders. |
|
Ohio |
|
Officials anticipate a budget surplus based on current trends in revenues and expenditures. The size of the surplus has not been estimated, and any plans for uses of the surplus have not been made public. The projected general revenue fund (GRF) ending fund balance for FY 2006 is $447.3 million. The ending fund balance, which includes a carry-forward balance for FY 2007, will be affected by any GRF expenditures or transfers authorized by the General Assembly or controlling board during the remainder of the fiscal year. |
|
Oklahoma |
Tax relief is being considered. |
|
|
Oregon |
Oregon law requires the return to taxpayers of all personal and corporate income tax revenues if actual receipts exceed the close-of-session forecast by more than 2%. This is commonly referred to as Oregon’s “kicker” law. Of the $785 million projected ending balance, $666 million is currently projected as being required to be returned to personal and corporate income taxpayers in the fall of 2007. |
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|
Pennsylvania |
|
Of the projected surplus, $68 million (25%) will be deposited in the Rainy Day Fund as required under statute. The remaining $204 million will be carried forward to the FY 2007 budget (for which basic education initiatives are a priority). |
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Rhode Island |
|
The surplus will be used to fund the FY 2007 budget. |
|
South Carolina |
Proposals include property tax reform and an income tax rebate. |
Repayment of various “other fund” accounts that were tapped in FY 2002-2005 to offset revenue shortfalls in those years. |
|
South Dakota |
|
Yet to be determined. |
|
Tennessee (N/A) |
|
|
|
Texas |
Property tax relief. |
Public education. |
|
Utah |
|
The projected surplus for FY 2006 was spent on one-time supplementals in FY 2006 and for one-time expenditures in FY 2007. Officials also made a one-time deposit of $25 million to the Rainy Day Fund. |
|
Vermont |
|
The FY 2007 base budget will rely on $9.74 million of the FY 2006 general fund balance. These one-time funds are targeted to supposed one-time expenses, according to the administration. Since they include pay increases and Medicaid, the legislature feels it unlikely that these will be one-time expenses. The use of these one-time funds for the FY 2007 base, along with current revenue projections, leaves officials looking at a FY 2008 structural deficit in the range of $40 million to $45 million (3.5% to 4%). |
|
Virginia |
|
Virginia’s commitment to Chesapeake Bay remediation. |
|
Washington |
|
|
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West Virginia (N/A) |
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Any leftover amount will go to the Rainy Day Fund, then to unfunded pension liabilities. |
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Wisconsin (N/A) |
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Wyoming |
Eliminated sales tax on food for home consumption for FY 2007 and FY 2008. |
|
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N/A = Not applicable
N/R = No response
Source: National Conference of State Legislatures, March 2006. |
