Pages

Tuesday, June 15, 2021

Money: At the Deadline


The legislature has passed a budget for 2021-22 by the June 15th (today) deadline. So, members of the legislature will be paid for enacting an on-time budget. Under court interpretation, it is the legislature that decides what a budget is - and whatever they decide doesn't necessarily have to be something that the governor agrees to. He could veto the budget. He could sign it and then exercise some line-item vetoes (but not add anything). In fact, the governor and the legislative leaders will continue to negotiate and likely come up with something - a modification of what passed - by July 1, the start of the new fiscal year. 

The Legislative Analyst's Office (LAO) has provided its analysis of what the legislature passed, which differs somewhat from what the legislature originally presented.* Some of the difference may be due to last minute changes by the legislature. Some may be due to different estimates of revenues, etc. A summary is provided below. Essentially, the LAO estimates that the legislature's budget has a slightly larger overall deficit compared to what the legislature estimated.**


====
**The LAO doesn't count the Public School Reserve.

No comments: