AG19910121 - Laserfiche WebLink

Home Browse Search

I expenditure~ and continuation items only" approach. The projected shortfall in this:scenarlo, was $399 million. (See Page I III of attachment.) Potential Reductions Affectlng'Count~es I It should be noted that while 'a'~wi'de~variety of budget reduction alternatives Were discussed by the ABC, no specific set of options were ~ndorsed. Nevertheless, a number of reductions I which would have severe implications for local governments were included in the discussions and may be incorporated in the Governor's recommended budget for the 1991-93 biennium. These i potentially damaging reductions need to be taken very seriously. 1. Reimbursements and Other Transfers to Local Governments I - ' The presentations to the ABC combined the revenues for existing reimbursements with proceeds from state shared taxes (intangibles, beer/wine, and utility franchise) under the general I label of 3'Loca! Government Transfers". Thus, the amount of local government funding which might be at risk has risen from $235 million to nearly $500 million. At the November 26 meeting, the ABC reviewed proposals which included a 5% reduction in the transfers which would save the state approximately $25 million.' The December 6.~presentation i~cluded a~proposal to freeze the appropriation for:Jlocal_ - government transfers" at 1990-91 levels thereby saving the state $23 million, in 1991-92 and $45.8. million in 1992-93.=.-[Also,. it. I appeared that the transfers would be subject to the~i~creased (2.7%) "negative reserve" requirement, producing a further reduction of approximately $13 million. (See Page III of the attachment.) 2. Reductions in the Publio School Fund · I Several proposals to cut state aid to public schools, were discussed, most of which would amount to a simple shift in burden from the state to the counties. (See Page IV of the attachment.) I O Delay Public Construction - $45 million School This proposal would produce a one-time d~verSion of monies from I the ADM Fund and the Critical Needs Fund to help balance the 1991-92 budget. Aside from disrupting planned school construction schedules, it would leave those counties which have I issued bonds in anticipation of a steady flow of ADM Funds with no alternative but an increase in property taxes. o Public Schools Utilities Costs - $36 million I EssentiallY, this would eliminate any state'appropriations for school utility expenditures. Since the 1930s funding for these Icosts has been a state rather than a local responsibility