Quiet season in state government is well and truly over through the Spring. The Governor is projecting a budget shortfall of $38 Billion in the coming year and proposing to address just under half by drawing on our state reserves, which had been set aside in case of recession, and just under half by reducing expenditures, mostly through temporary measures. The rest is to be settled by internal borrowing from Peter for Paul’s comfort.
Senior staff at Imagine are anticipating and budgeting for the final round of rate increases not to occur as currently scheduled in law on July 1. Until the state budget is firmer, we will need to be very careful with funds. Until the state sustainably corrects the deficit, it will be important to prepare for the possibility of future funding cuts. That is likely to mean any surpluses we run in the near future will need to be socked into reserves or spent on one-time rather than ongoing expenditures. That means that Imagine is more likely to give bonuses next year than raises, and we’re likely not to add a Director of Services or other leadership position in the near future. Good thing I’m getting a vacation now.
As always, thanks to Marty Omoto of CDCAN for amplifying the transparency and circularity of information between the community and policy-makers. If you would like to receive CDCAN’s extensive reporting, write to Marty. CDCAN’s work is entirely funded by donations from those of us who benefit. Write to me or to Marty if you’d like to kick in.
-Submitted by Doug