This Has Been a Busy Week!

June 30, 2023

Busy for some, but sadly not for all!   It is, as I’m sure you have noticed, 30 June.  We have no amended budget for FY24.  There is plenty of finger pointing, blaming the other guy (If you’re a R you blame the D and vice versa; if you’re the Governor, you blame the Legislature, etc.)

Rumor has it that since the conferees did not agree when they met after the primaries, the Governor will call a Special Session in the next week or two. The short version of the dispute is:

• The Governor has stated that he proposed a perfectly good budget and the General Assembly did not pass it
• The House (majority R) agrees substantially with the Governor and wants to include his proposed changes to the tax code (reducing the potential tax revenues going forward)
• The Senate (majority D) is very concerned about the proposed revenue reductions in the future (always harder to bring the tax rates back up!) because of the ongoing uncertainty about the strength of the economy.  Since we are flush with cash they would readily agree to tax rebates (a one-time event).  AND
• The Senate included in it’s proposal the rate increases and studies that we have said are critical.

I think the rumor is correct, they will be back to finish negotiations soon – there are some strict timelines for giving the members time to review the conference report and some steps it will need to go through to get to the end.    But,  don’t count on knowing anything definitive until the end of July.   Remember they can, and have in the past, back dated increases to coincide with the fiscal year (July 1st); we will keep you apprised!