Legislative Update for August 9, 2009
From Gene

Budget Cuts
As I reported by phone, the allotment for Driver Education was $32,859,859. That represents a cut of $1,100,000. I was told we actually reverted more than that but, at my request, they attempted to cover the projected increase in eligible 9th graders.

Senate Bill 269- the "Camera Bill" was withdrawn from consideration. It’s gone for now I don’t know if they’ll try it again in the short session.

The short session will convene on May 12, 2010. The worst thing in the budget is so called Discretionary Cuts. Local districts will have to cut $225M the 1st year and $304M the 2nd year.

This may or may not affect our program. The 2nd year delays all text book replacement to the tune of $115.4M.

District with fewer than 8,000 students reduced central office staff by 7.5%

" " more than 8,000 but less than 30,000 reduced central office staff by14%

" " 30,000 +  reduced central office staff by18%

There are no salary increases but longevity pay is provided.

Increasing Revenue
General Information on the New Budget

Faced with what the democratic leadership said was a $4.5B short fall the General Assembly approved the Budget voting on party lines. The Senate vote was 27-18. The House vote was 66-52. The total budget was $19B which is $2b smaller than last year’s budget. The gap was addressed with a combination of cuts and increased revenue. Cuts were $1.7B and new revenue generated $990 M. They also used some of the federal stimulus money. The additional revenue will consist of:

1¢ Sales Tax to sunset in two years. This generates $880M
3% Surcharge on corporate income tax owed for years 2009 and 2010
3% individual income tax on married couples filing jointly earning over $250,000 for years 2009 -2010
2% income tax Surcharge on couples filing jointly that earn $100,000 to $200,000 for years 2009-2010
2% surcharge on single filers earning $60,000 to $150,000. Over $150,000, ^ 3%
0.8¢ increase per can of beer. 5¢ increase per six pack
5% increase on liquor
4¢ increase per wine bottle
10¢ increase per pack of cigarettes
2.8% increase on other tobacco products
Sales tax on digital downloads + online purchases