Spotlights 370 - Back to Basics Budget: Responsible savings and reforms
March 16, 2009
Key facts:
The budget proposal outlined here reduces appropriations in fiscal year (FY) 2009-10 to $18.8 billion, $2.6 billion less than the final budget for FY 2008-09, and similar to the budget for FY 2006-07.
In this proposal, per-capita spending adjusted for inflation of $1,969 remains higher than in FY 1997-98 or any year before.
This proposal broadens the tax base, eliminates special credits and business subsidies, reduces the corporate tax rate to 6 percent, and provides nearly $400 million in tax relief for household investments in education, health care, and child-rearing.
This proposal injects $200 million each year into the State Health Plan, with the remainder arising from adjustments to the plan and employee contributions. It also puts $300 million each year into the state employee pension fund. Moving both to direct contribution models will limit the need for future injections of taxpayer funds.
Transparency and accountability are important elements of this budget, as is an option for taxpayers to contribute more than legally required through taxation.
