New York In December 2011, the State enacted tax reform legislation to amend existing tax structure, which also produced additional rev- enue necessary to reduce the estimated FY 2013 budget gap. While the tax reforms resulted in increased revenues during FY 2012, reflecting the impact of the tax law changes going into effect during the final quarter of FY 2012, the State did not require the tax reforms to address a current year deficit.
Notes to Table 13
Strategies Used to Reduce or Eliminate Budget Gaps, Fiscal 2012
Arizona Payment deferral, temporary revenue increase.
California The University of California Board of Regents and the California State University Board of Trustees adopted tuition and fee in- creases for 2011-12, in part due to budgetary reductions. The 2012-13 Governor's Budget does not include any tuition increases for the universities for the 2012-13 academic year. The 2011 Budget Act included a fee increase for California Community Col- leges beginning in the fall 2011, with a second increase to begin summer term of 2012 due to a mid-year reduction. For K-12 Education, the 2011-12 Enacted Budget included deferrals of general purpose funding for local education agencies and targeted cuts in other K-12 programs and child care funding. The 2012-13 Governor's Budget includes targeted cuts in other K-12 pro- grams and child care funding. Public safety realignment, suspended mandates, fund shift. Medicaid managed care expansion and provider taxes.
Colorado FY 11-12 closure of a state prison. FY 12-13 reductions to K-12 and Higher Education, reductions within Medicaid budget to help offset increases.
Connecticut Wage freeze.
Hawaii Diversion of special fund revenues to the general fund.
32 NA T I O N A LGO V E R N O R SAS S O C I A T I O N • NA T I O N A LAS S O C I A T I O N O FST A T E BU D G E T OF F I C E R S
Michigan Other fiscal 2012 strategies include reducing university operations; shifting a portion of higher education spending from general fund to School Aid Fund revenue; closing state facilities including two prisons, state police posts and dispatch facilities; estab- lishing a 48-month time limit for Family Independent Program clients; competitively bidding prisoner health and mental health services; eliminating nearly 370 jobs across state government; requiring employee contributions into defined benefit retirement plan; refinancing debt; eliminating/reducing revenue sharing payments to local government units; establishing a health care in- surance claims assessment in anticipation of federal action to phase-out the existing use tax on Medicaid health maintenance organizations.
Nebraska The Governor and Legislature enacted appropriations for the 2011-2013 biennium during the 2011 session prior to the beginning of the biennium. The strategies used to eliminate the projected “budget gap”, as defined by the Legislation Fiscal Office (and de- scribed in the Note for question 5), are included in this response for FY2012 and FY2013. The “targeted cuts” and “reduction of local aid” were as compared to the then current base appropriations, not reductions to enacted appropriations.
Nevada Moved some services from state to counties.
New York Layoffs—FY 2012: The FY 2012 Enacted Budget contained savings related to the Governor's initiative to redesign Agency service delivery, which includes, but is not limited to, facility closures reflecting excess capacity conditions, operational efficiencies, and wage and benefit changes that have been, or are expected to be, negotiated with the State's employee unions. The continuous effort to identify efficiency in the delivery of agency services could result in unforeseen workforce reductions. Furloughs —FY 2012: The FY 2012 Enacted Budget contained savings from the Governor's initiative to redesign Agency service delivery through several means including, but not limited to, wage changes pending negotiation with the State's employee unions. By November 2011, the State's two largest employee unions, the Civil Service Employees Association (CSEA) and the Public Employees Federation (PEF), ratified multi-year labor agreements with the State. Under these agreements, there are no general salary increases for three years (FY 2012 through FY 2014). Employee compensation during FY 2012 and FY 2013 will be tem- porarily reduced and employees will receive compensatory Deficit Reduction Leave credits (totaling nine days) valid through FY 2013. CSEA-represented employees will receive a $1,000 lump sum payment ($775 paid in FY 2014 and $225 paid in FY 2015). Employees will receive a 2 percent increase in FY 2015 under both agreements, and CSEA-represented employees will receive a 2 percent increase in FY 2016. Employees represented by CSEA will be repaid the value of four days in equal consecutive in- stallments starting at the end of the CSEA contract term and employees represented by PEF will be repaid the value of nine days in equal consecutive installments starting in FY 2016. Salary Reductions—FY 2012: The FY 2012 Enacted Budget contained savings from the Governor's initiative to redesign Agency service delivery through several means including, but not limited to, wage changes pending negotiation with the State's employee unions. By November 2011, the State's two largest employee unions, the Civil Service Employees Association (CSEA) and the Public Employees Federation (PEF), ratified multi-year labor agreements with the State. Under these agreements, there are no general salary increases for three years (FY 2012 through FY 2014). Employee compensation during FY 2012 and FY 2013 will be temporarily reduced and employees will receive compen- satory Deficit Reduction Leave credits (totaling nine days) valid though FY 2013. CSEA-represented emplyees will receive a $1,000 lump sum payment ($775 paid in FY 2014 and $225 paid in FY 2015). Employees will receive a 2 percent increase in FY 2015 under both agreements, and CSEA-represented employees will receive a 2 percent increase in FY 2016. Employees rep- resented by CSEA will be repaid the value of four days in equal consecutive installments starting at the end of the CSEA contract term and employees represented by PEF will be repaid the value of nine days in equal consecutive installments starting in FY 2016. Cuts to State Employee Benefits—FY 2012: The FY 2012 Enacted Budget included savings from the Governor's initiative to redesign Agency service delivery through several means including, but not limited to, benefit changes pending negotiation with the State's employee unions. By November 2011, the State's two largest employee unions, the Civil Service Employees Association (CSEA) and the Public Employees Federation (PEF), ratified multi-year labor agreements with the State. These agree- ments included substantial changes to employee health care contributions. Other - FY 2012: Additional revenue actions including tax modernization initiatives and improving voluntary compliance, increasing the level of resources available from abandoned property and withholding tax debts from certain Lottery winnings; sweeping additional available fund balances from other State funds to the General Fund; other non-recurring measures.
Oregon Rainy Day Fund─Includes Education Stability Fund (Lottery). South Dakota Education Jobs Fund.
33 TH E FI S C A L SU R V E Y O F ST A T E S • SP R I N G 2 0 1 2 West Virginia Use onetime surplus from General Revenue & Lottery Funds from previous fiscal years.
Wisconsin Restructure debt.