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Stop-gap spending measure heads to the Senate floor
Posted By Tazra Mitchell On June 25, 2013 @ 11:42 am In NC Budget and Tax Center | Comments Disabled
As expected, the Senate Appropriations Committee passed a stop-gap measure  this morning that will keep the state government running during the first 30 days of the next fiscal year that starts on July 1st. The closed-door negotiations over the tax plan  continue to hold up the budget process, prompting legislators to miss the June 30th deadline for passing a two-year spending plan.
The resolution permits state agencies to spend up to 95 percent of their authorized budgets from the current fiscal year. The Office of State Budget and Management is tasked with determining how to trim the other 5 percent. Budget writers claim that a reduction is required to make up for a projected spike in Medicaid checkwrites resulting from a switch to a new payment system  that will begin on July 1st. In an unusual move, the measure also appropriates additional dollars to address the Medicaid shortfall by using unspent dollars, overcollections, agency reversions, and a portion of the TANF block grant.
It is not uncommon, however, for legislators to pass such a measure—which is known formally as a Continuing Resolution—if they anticipate missing the June 30th deadline. The last stop-gap measure was approved in 2011 amidst a spending showdown  between then Governor Perdue and the legislature.
The measure is headed to the Senate floor before it is sent to the House chamber.
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URL to article: http://pulse.ncpolicywatch.org/2013/06/25/stop-gap-spending-measure-heads-to-the-senate-floor/
URLs in this post:
 stop-gap measure: http://www.ncleg.net/DocumentSites/Committees/SenateAppropriationsBaseBudget/2013%20Long%20Session/06_25_2013%20Meeting/H336-CSLE-19.pdf
 negotiations over the tax plan: http://pulse.ncpolicywatch.org/2013/06/25/settling-between-bad-and-worse/
 new payment system: http://www.newsobserver.com/2013/06/19/2975914/dome-billing-processor-raises.html
 spending showdown: http://www.ncpolicywatch.com/2011/04/29/spending-showdown/
 Senate leader changes his tune on budget negotiations: http://pulse.ncpolicywatch.org/2013/06/25/senate-leader-changes-his-tune-on-budget-negotiations/
 Insko: Medicaid expansion would have offered state more budget flexibility (video): http://pulse.ncpolicywatch.org/2013/06/24/insko-medicaid-expansion-would-have-offered-state-more-budget-flexibility-video/
 Budget process enters into final stages, forcing lawmakers to agree on tax plan: http://pulse.ncpolicywatch.org/2013/06/18/budget-process-enters-into-final-stages-forcing-lawmakers-to-agree-on-tax-plan/
 Slowing growth in state spending would have serious consequences: http://pulse.ncpolicywatch.org/2013/06/26/slowing-growth-in-state-spending-would-have-serious-consequences/
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