State Budget Update – Continuing Resolution Passed, Committees to Work Through Weekend

Continuing Budget Authority

Today legislators approved a third continuing budget resolution to keep state government operating in the absence of a budget.

This latest stopgap budget resolution has no expiration date and sets spending at 84% of the current 2008-2009 budget.

State Budget Update

Perhaps this resolution will be the last of this session. It appears that Senate and House leaders are once again close to agreement on  their tax and budget negotiations.

The basics of the draft tax plan: 1% sales tax, a 2% income tax surcharge on incomes between $100,000 and $250,000 going to 3% for those making $250,000 or more, and tax increases on cigarettes, beer, wine and liquor. Both the sales tax increase and the income tax surcharge would expire after two years.

This plan will raise $990 million in new taxes to restore budget cuts.

Appropriations committees are expected to work over the weekend so the budget can be presented in the House and the Senate for a vote next week.

While several lawmakers feel confident that a deal is in place, others point out that previous deals have fallen apart.

It is reported that the Governor’s office has been involved in these recent budget negotiations.

The Governor has not publicly weighed in on this new plan as of this post.

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