Senate budget action

The Senate Budget and Taxation Committee has crafted its version of the state budget for fiscal year 2014, and it will be considered by the full Senate this week.

The Senate committee proposal is very similar to the budget approved by the House of Delegates, with two notable exceptions.

1.       The Senate committee places $75 million of the available balance (over $1 billion in both versions) in the state’s general fund, rather than the “Rainy Day Fund.” In the event that federal budget actions cause a reduction in revenue, this money would be available to support the budget without the need for further action by the legislature.

2.       The Senate committee reduces by $100 million the state contribution to teachers’ and employees’ pension costs.

The resulting budget would grow 2.8 percent (including all funds but excluding payments to reserve funds), totaling $36.8 billion.

The budget would leave a balance of $359 million in the general fund balance and $845 million in the Rainy Day Fund – a total of over $1.2 billion.

Following debate, possible amendment and approval on the floor of the Senate, the budget will then go to a House-Senate conference committee. Assuming the conferees can work out differences fairly promptly, the budget could be complete by the April 1 constitutional target date.