Carpi & Clay – BUDGET, BUDGET, BUDGET 

The Governor and Legislature continued to grapple with efforts to tray and solve the more than $25 billion budget deficit ($8.2 billion current year and a $17.2 billion budget year shortfalls). In mid-March the Legislature voted on a portion of the budget, essentially passing the cuts-only portions of the Governor’s budget proposal. The legislature was unable to secure a 2/3 vote on the tax increases or the constitutional protections that are part of the broader realignment proposal. The mood in the legislature has become very contentious between the two parties. The final deadline for placing an item before the voters in June appeared to be March 31st 9for a June 28th election).

For now the Governor has signed the cuts portion of the budget and it appears as though a May-revise will come out in mid-May and the legislature continues to operate like Rome isn’t burning. We haven’t heard when IOU’s will need to be sent out or when the cash crunch will really occur for the state, but it is bound to happen – it always does.