Budget Update

This week, the full House reviewed and finalized the proposed $48 billion state budget, and the proposals now will go to the Senate for further consideration. While the final House budget proposal invests $200 million more for the state’s K-12 funding formula, it still falls roughly $300 million short of fully funding the foundation formula. Additionally, the House version of the budget also takes out millions of federal dollars meant to go toward childcare subsidies, which was an item that Governor Kehoe included in his requested budget proposal. During the House debate, several amendments were offered by Democrat members, but ultimately failed, seeking to shift money to the school foundation formula and restore payments to childcare providers. 

Although the majority of amendments failed, the biggest change approved by House members was a $50 million cut in Medicaid general revenue matches. Overall, the House approved budget is $5 billion less than what Governor Mike Kehoe proposed in his State of the State Address. 

The House Budget Committee also dedicated committee time this week to three other budget bills, which includes potential funding for capital improvement projects as well as funding for projects under the American Rescue Plan Act. The Senate will now begin its work on the budget.