Dear Neighbor,
A bill I authored to reinstitute a ceiling for debt payments related to state capital investment borrowing continues to advance in the House after passing a committee this week.
The bill would cap state payments on borrowing at a fixed percentage of the state's General Fund revenue. The goal is to get a handle on payments the state is making on debt service, which have increased by nearly double over the last several years.
Click here for a recent news release I issued with more details on this subject. Look for more as things develop at the Capitol.
On another note, the House unveiled its supplemental budget proposal this week. This can be viewed as a tune-up to the new biennial budget that was put in place last year. The bottom line is the House's proposal is neutral in terms of spending vs. reductions.
The fact there is a net-zero effect on the bottom line through the House's plan means the $900 million surplus remains intact. That money could be used to support other priorities such as transportation and tax relief. Bills related to both remain in conference committees and can come into play later this session.
As a quick refresher, the House transportation plan provides $7 billion on roads and bridges over the next 10 years without an increase in the gas tax. The tax bill includes helpful measures such as phasing-out the tax on seniors' social security benefits and military pay. There also are tax credits for families saving for college and students paying off their loans, expanded deductions for families with school-aged children, and property tax relief for farmers and small businesses.
The governor has issued his own supplemental budget and, unlike the House version, his raises spending and taps into the surplus. The Senate is expected to come out with its own proposal soon.
These three plans, side by side, will allow us for to compare and contrast and lay the groundwork for reaching a finished product.
Sincerely,
Bob