The Federal Ties that Bind
The state has issued its Budget overview and two items jumped off the page. 1) The state depends on the federal government for 50%+ 22% (See the update) of the state budget and 2) the 2008 budget has been revised up $1 BILLION for FY2008.
[UPDATE]
I wanted to get this clarification from Mike on this post:
The LFA report does not explicitly state what “state funds” are or are not. The GOPB report is much clearer in this regard which is why I usually base my calculations on GOPB data. Unfortunately, the GOPB report doesn’t come out until April or sometimes later.
“State funds” include
- individual income tax
- corporate income tax
- unearmarked general sales tax
- other general fund (severance, insurance premiums, tobacco/beer taxes, liquor PROFITS)“State funds” exclude
- dedicated credits such as university/college tuition, liquor TAXES, gas taxes, motor vehicle registration fees
- earmarked general sales tax
- education property taxes such basic, voted, board, K-3 (other K-12 property taxes such as debt service, recreation, transportation, etc are excluded from both “state funds” and total funds.Also, GOPB is more accurate in calculating growth rates. For example, when comparing FY09 and FY08, GOPB excludes FY08 supplementals because FY09 supplementals won’t be known until next year. By including FY08 supplementals when calculating growth rate, which LFA does, the growth rate will most likely be understated once supplementals are known and included for both years.
Supplementals should be included when they are known for both years. For example, FY07 and FY08 supplementals are known so it makes sense to include those.
Mike said,
March 13, 2008 @ 4:04 am
In FY09, the state will receive about 22% of its funding from the feds. This is a little lower than it has been in previous years. Look at the first pie chart on the first page right column of the LFA’s State Budget Overview.
I think you are misunderstanding the definition of “state funds” on the LFA report. “State funds” includes general and education funds but excludes user fees such as university/college tuition and gas taxes, earmarked sales taxes, and other misc. funds.
Mike said,
March 13, 2008 @ 4:06 am
Total appropriations include local education property taxes such as basic levy, voted leeway, board leeway, K-3 reading program but these are excluded from “state funds”.
Lyall said,
March 13, 2008 @ 4:19 am
Mike,
You’re going to have to help me out here then. I am not sure I am seeing what you’re talking about. In the right hand column the box: Total Budget
There are alternating lines Total Budget, and then “State Funds”
FY2008 Revised Budget: 12.022 Billion
State Funds: 6.043 Billion
If I understand you correctly you are saying that of the 6 Billion or so difference 3 Billion of it is coming from user fees, k-3 reading program, etc. Am I reading your comment correctly? Also where are you getting the info on what is included State Funds and what is not? I don’t see it in the report.
Thanks for the clarification and help.
Mike said,
March 13, 2008 @ 4:59 am
The LFA report does not explicitly state what “state funds” are or are not. The GOPB report is much clearer in this regard which is why I usually base my calculations on GOPB data. Unfortunately, the GOPB report doesn’t come out until April or sometimes later.
“State funds” include
- individual income tax
- corporate income tax
- unearmarked general sales tax
- other general fund (severance, insurance premiums, tobacco/beer taxes, liquor PROFITS)
“State funds” exclude
- dedicated credits such as university/college tuition, liquor TAXES, gas taxes, motor vehicle registration fees
- earmarked general sales tax
- education property taxes such basic, voted, board, K-3 (other K-12 property taxes such as debt service, recreation, transportation, etc are excluded from both “state funds” and total funds.
Also, GOPB is more accurate in calculating growth rates. For example, when comparing FY09 and FY08, GOPB excludes FY08 supplementals because FY09 supplementals won’t be known until next year. By including FY08 supplementals when calculating growth rate, which LFA does, the growth rate will most likely be understated once supplementals are known and included for both years.
Supplementals should be included when they are known for both years. For example, FY07 and FY08 supplementals are known so it makes sense to include those.