House Appropriations Committee Majority Chair Bill Adolph (R-Delaware) Wednesday introduced House Bill 1437, the House Republican budget proposal for Fiscal Year 2013-14. The proposal spends $28.3 billion, which is a $578 million or 2.1 percent increase over the current fiscal year.
The Governor proposed a budget of $28.4 billion General Fund budget, but included some $175 million in projected savings through pension reform. The current FY 2012-13 budget is $27.7 billion.
The proposal includes none of the business tax cuts proposed by the Governor.
The proposal includes none of the business tax cuts proposed by the Governor.
“The House budget proposal outlines priorities related to education, health and human services, environmental protection, public safety, job creation and government transparency,” Rep. Adolph said. “We are recommending a $100 million increase for basic education; supporting the governor’s priority to put 300 new state troopers on the streets; restoring funding for programs that deal with diseases like diabetes, ALS and epilepsy; providing funding for county conservation districts; and increasing funding for the Office of Open Records.”
According to Rep. Adolph, the most recent preliminary revenue estimate prepared by the Independent Fiscal Office (IFO) on May 1 was used as the starting point to craft the House budget proposal. The IFO report forecast state revenue collections will be less than anticipated in February.
“Given the revenue challenges forecast by the IFO on May 1, the House had to essentially start from scratch when drafting the House proposal. The House had to look at what was possible with the revenue reality that developed since February,” said Rep. Adolph.
The budget contained in House Bill 1437 was based on current law and does not factor in any policy proposals currently being considered by the legislature. It does not include pension reform proposal, any revenue from liquor privatization or the pending transportation funding proposals.
“The House budget assumes current law as we stand here today. The House has a strict calendar that needs to be followed to pass a budget on time. We do not have the luxury of waiting until June 30 to introduce a budget after we know what policy decisions are made by the Legislature,” said Rep. Adolph. “There is a lot that still needs to be negotiated, and I am sure the outcome of those negotiations will be reflected in a final budget that is passed by June 30.”
The biggest changes was House Republicans credited a $140 million decrease in school pension costs to this budget proposal because of a decrease in total school salaries and projecting somewhat stronger revenues coming into the state.
House Republicans proposed a $1 million increase in the Community College Capital Fund and proposed a transfer of $4.3 million from the Race Horse Fund to the Animal Health Commission.
The proposal also restores $3.8 million in funding for conservation districts, adds $2 million for the Heritage Parks Program, restores $400,000 in funding for Sewage Facilities Planning Grants and provides a $4.4 million increase to the Department of Environmental Protection personnel line items.
The budget cuts Commonwealth Financing Authority funding by $2.7 million and makes a 42.7 percent decrease to funding for the Joint Legislative Air and Water Pollution Control and Conservation Committee.
House Bill 1437 is scheduled to be considered by the House Appropriations Committee on June 3
Click Here for the House Republican budget spreadsheet. Click Here for a highlights presentation on the proposal.
