As a result of recent tax revenue shortfalls, the House and Senate versions of the state budget for fiscal 2003 are at least $650 million out of balance. With more than $1 billion of additional tax revenues already included in the legislative budgets and almost $2 billion of the state's $3 billion of reserves already committed to filling the 2002 deficit, further spending cuts are needed to bring the 2003 budget into balance. The Foundation calls on lawmakers to meet part of this challenge by curbing longstanding spending abuses and inefficiencies that have not been addressed in either the House or Senate budgets. Despite reductions in a variety of programs, total spending in the House budget is up roughly $700 million, and the Senate budget grows even more, by almost $1 billion, largely the result of staggering increases in Medicaid and other health care expenditures.
2003 Budget: Major Spending Cuts Still Required
As a result of recent tax revenue shortfalls, the House and Senate versions of the state budget for fiscal 2003 are at least $650 million out of balance. With more than $1 billion of additional tax revenues already included in the legislative budgets and almost $2 billion of the state's $3 billion of reserves already committed to filling the 2002 deficit, further spending cuts are needed to bring the 2003 budget into balance. The Foundation calls on lawmakers to meet part of this challenge by curbing longstanding spending abuses and inefficiencies that have not been addressed in either the House or Senate budgets. Despite reductions in a variety of programs, total spending in the House budget is up roughly $700 million, and the Senate budget grows even more, by almost $1 billion, largely the result of staggering increases in Medicaid and other health care expenditures.
