Kelley: Budget Update

This week we were reminded of what is really important when a colleague was removed from the House chamber on a stretcher. Rep. Sylvester Taylor (D-Black Jack) began experiencing chest pains during debate on Tuesday afternoon. Emergency personnel and an ambulance were called, and Rep. Taylor was taken to a local hospital. As of this writing, he was resting comfortably. Our thoughts and prayers are with him and his family.

The House Budget Committee passed its version of the state budget this week. This represents the second step in the budgetary process. The first was Governor Nixon delivering his budget to the legislature as a starting point. All appropriations bills originate in the House.

The total budget this year, as passed by the Budget Committee, amounts to about $23.2 billion. This is an increase of about $142 million from what was proposed by Governor Nixon and a slight overall decrease from last year. The main difference is in the use of federal funds to be used for education.

The reality of limited state revenue was realized as several amendments were distributed but not voted on. One amendment would have added money for transportation for rural school districts. The money would have come from an ethanol production subsidy fund. After some debate, the sponsor of the amendment withdrew it. In all, less than two dozen amendments were offered. This is in comparison to over 200 last year. It has long been a Budget Committee practice that additional spending must come from an identified source.

Although the total budget tops $23 billion, less than $7 billion amounts to what is known as General Revenue. This is money which comes from sources such as the state sales tax and income taxes. It is also the only money over which legislators have some form of control. Most of the money in the budget is dedicated for a particular purpose and can only be spent in certain areas. Examples of these funds are fuel taxes, conservation money, federal money, and professional fees.

The full House is scheduled to debate the budget during the final week of March. Following passage, the process will begin again in the Senate. Any differences between the two chambers will be reconciled by conference committees consisting of five representatives and five senators. The final budget takes effect July 1, 2011.