General Fund Budget Slashes Funding
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House members have finally released their general fund and education budgets.
As many expected, the general fund currently has no new revenue, leading to even more severe cuts.
We’ve been waiting for months to see what the house would do to with the general fund budget.
Their tax plan has fallen through, leading to this bare bones budget.
So far, the solution to the estimated 500 million dollar deficit is more cuts.
With the general fund out of committee, major agencies like Medicaid, corrections, mental health and the department of human resources are looking at a 5 percent cut.
Everybody else is facing roughly 9 percent in cuts.
House General Fund committee Chairman Steve Clouse says these cuts are even more serious for agencies like medicaid.
“I think you’re going to see some drastic cuts in services that they’re able to provide. Not to mention the fact that we get 2 to 1 match on those dollars. That 35 million turns into an additional 70 million in federal money so basically that’s over 100 million dollar cut right there,” said Rep. Clouse.
The house was moving forward with a plan to raise several taxes, like cigarettes and the car rental tax.
Clouse says those are dead in the water because the senate just won’t consider any of those options.
“I’m very frustrated. I’m very frustrated at the senate. I’m very frustrated at the process that we’ve gotten this far down the road and haven’t come with a solution,” said Clouse.
But the senate says they have the solution with the gambling and lottery bill.
“Well you know it’s a bare bones budget that came up. I spoke with the speaker yesterday and let him know that in the senate there was not wide support, very little support for tax increases on the people. That’s why from day one I had introduced the gaming legislation to give the people an option in lieu of taxes,” said Senate President Pro Tem Del Marsh.
No matter what happens, the budget still has to go to the governor’s desk. He was very dissapointed in the version passed out of committee.
“This budget is unworkable. It’s irresponsible. It really hurts people and that’s what I’m most concerned about,” said Gov. Bentley.
