The checkered flag is poised to start waving as state lawmakers enter the final month of the legislative session with a host of major policy and budget issues still unresolved, from repeal of the death penalty to raising taxes on the mining industry, wholesale changes to the K-12 funding formula and many other big-ticket items.
Tuesday’s meeting of the Economic Forum — the panel of five economists who forecast expected state tax revenue — is generally viewed as the green light for a host of budgetary issues and major bills to move to the finish line before the clock strikes midnight on sine die, May 31.
Most indicators are that the improving economy, coupled with rising COVID vaccination rates, will boost state tax revenues above what the Forum forecasted in December — about $8.5 billion over the next two fiscal years, or about $500 million less than the last two-year budget cycle.
Legislators have nonetheless proceeded based on the less-rosy budgetary picture, making tough cuts to education and health care programs that at times drew heated debate. While a recovering economy is expected to help alleviate some of those previously identified cuts, lawmakers say they’re still waiting on the bigger piece of the puzzle — U.S. Treasury guidance on how the state can spend the roughly $2.9 billion allocated through the recently passed federal American Recovery Act.
But without guidance soon, legislators say it’s almost a guarantee that a summer special session will be needed to make a decision on how to dole out the one-time federal windfall.
“Every day from this day forward, we’re running out of time,” Senate Finance Committee Chair Chris Brooks said. “(If) that happens at a certain point … the only way we can do it is to close the budget, and then fill it