The state budget is a mess and it keeps getting worse. What’s worse is that this budget mess isn’t caused by a recession but by poor management and political gamesmanship. The first year of the budget significantly overspent. The second year, which we are in the middle of, is significantly out of balance. All of this will make the next budget a significant problem.
This budget was supposed to be a transition budget. The earlier 2011 budget was a crisis budget. An $800 million imbalance forced significant budget cuts to bring spending roughly in line with regular revenues.
The 2013 budget relied on a significant surplus generated by its predecessor to include budget growth that was almost but not quite supported by revenue. The budget counted on spending $29.5 million of the surplus in the first year and $26.7 million in the second.
With the release of an unaudited budget summary last week we discovered that the budget situation is in fact quite bad. We also know now that there is no revenue problem at all but a significant spending problem....Click here to keep reading