Governor Proposes 4% State Employee Raise In New Budget

This is the first time in years that the state hasn’t had to bail the general fund budget out of a crisis.

In fact, State Finance Director Clinton Carter says revenues are up significantly.

“It’s a very good year and we’re quite pleased with not only the budget itself but the budget process this year. Revenues for both the education trust fund and the general fund were at all time record highs,” said Carter.

Some of that extra money is essentially going into the state’s savings account, but that means all of the state agencies are getting at least level funding. That should also be enough to cover the 4% raise for state employees on top of that.

Carter says part of the increase is from the Remote Sellers Tax, otherwise known as the Amazon tax. But $105 million is also coming from the BP Oil Spill Settlement.

“There is a natural increase of about 50 to 60 million dollars in the general fund. And on top of that there’s the one time money of BP. Well the natural increase is more than enough to pay for the pay raise as well as some of the other plus ups. All of the 105 is going to medicaid,” said Carter.

Pre-k is also getting 20 million extra dollars in the governor’s proposal.

But there is a problem.

The federal government might not provide 100% matching funds on the Children’s Health Insurance Program.

That would leave the state in a $90 million hole.

“We thought it more prudent to continue budgeting the way we have over the last several years, but more important to make everybody aware that potential possibility down the road. 90 million is just too large a hole to leave. Budget dollars are just too precious to leave unbudgeted,” said Carter.