Legislative Update for August 3, 2009
From Gene

The leadership in both Houses reached a tentative agreement on a revenue package this week. They obviously didn’t make the July 1 date with a new budget. They also missed the date of the first Continuation Resolution (July 15). They have adopted another CR with a deadline of July 31.

Highlights of the new revenue package:

* Total new revenue = $990 M . This would put the total budget for the fiscal year at $18.9 B...considerably less than last year’s budget.

* 1 cent sales tax starting in Sept. This would generate $803.5
M

* The newest item is a 2% income tax surcharge $197 M
* 2% corporate income tax surcharge $15.4 M
* 0.8 cent increase per can of beer
* 5 cents per six pack $12.6 M
* 5% increase on liquor $20.1 M
* 4 cents increase per wine bottle $2.9 M
* 10 cents per pack increase of cigarettes $33.3 M
* 2.8% increase on other tobacco product $5.0 M
* Digital downloads and online purchases $8.4M
*Conforming to Internal Revenue Code changes ($116.34 M)

Even with this new revenue there would continue to be large cuts in almost all agencies budgets.

When it seemed that everything was on a roll Governor Purdue stepped in and denounced the plan. Her stated concerns were:

1. An increase in class size was unacceptable.

2. She could not accept the 2% surcharge on income tax for the low and middle income earners.

Now the things you hear are, "Back to the drawing board.", "We will have to have yet another Continuing Resolution.",

"How much longer can agencies continue without a new budget?" I don’t know the answers to these things, but when they are answered I’ll let you know. LEGISLATIVE UPDATE (8)

FROM GENE

The leadership in both Hoses reached a tentative agreement on a revenue package this week. They obviously didn’t make the July 1 date with a new budget. They also missed the date of the first Continuation Resolution (July 15). They have adopted another CR with a deadline of July 31.

Highlights of the new revenue package:

* Total new revenue = $990 M . This would put the total budget for the fiscal year at $18.9 B...considerably less than last year’s budget.

* 1 cent sales tax starting in Sept. This would generate $803.5 M.

* The newest item is a 2% income tax surcharge $197 M

* 2% corporate income tax surcharge $15.4 M

* 0.8 cent increase per can of beer

5 cents per six pack $12.6 M

* 5% increase on liquor $20.1 M

* 4 cents increase per wine bottle $2.9 M

* 10 cents per pack increase of cigarettes $33.3 M

* 2.8% increase on other tobacco product $5.0 M

* Digital downloads and online purchases $8.4M

*Conforming to Internal Revenue Code changes ($116.34 M)

Even with this new revenue there would continue to be large cuts in almost all agencies budgets.

When it seemed that everything was on a roll Governor Purdue stepped in and denounced the plan. Her stated concerns were:

1. An increase in class size was unacceptable.

2. She could not accept the 2% surcharge on income tax for the low and middle income earners.

Now the things you hear are, "Back to the drawing board.", "We will have to have yet another Continuing Resolution.",

"How much longer can agencies continue without a new budget?" I don’t know the answers to these things, but when they are answered I’ll let you know.