Senate Finance Committee Receives Report on Projected Revenue Shortfall

September 20, 2016

As a follow-up to the Governor’s presentation to the joint money committees at the end of August that outlines the $844M shortfall in the current year (FY 2017) budget, Committee Staff presented the steps being taken by the Administration and the projected impact of the cuts on the Health and Human Resources (HHR) agencies:

  • The Governor has broad authority to reduce spending up to 15% of the agency’s operating budget.

  • The Governor’s Budget (containing his plan for reductions) is the primary vehicle as the General Assembly session concludes well into the third quarter – too late for much effective action.

  • HHR is 30% of the Budget (with Medicaid 73%, and DBHDS 12% – 85% of that total)

  • HHR Agencies have already pledged nearly half of the $23.5 million of general fund balances pledged as savings; agencies have been asked to prepare 5% reduction plans less the pledged balances.  Those plans are due to the Department of Planning & Budget today.


More details will follow once we have had the opportunity to review the plans.