Summary of Governor’s Proposed FY 06 Revenue Changes

Back • Publication Date: February 10th, 2005

Authors: Shelley Geballe, JD, MPH

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Governor Rell proposes to address 53.8% of the structural deficit in SFY 06 through cuts in current services spending, and the balance through net revenue increases. Less than half the proposed new revenues (49%) result from permanent changes in taxes and fees that can be expected to generate revenues beyond this biennium, and 43% of these permanent revenues come from “sin” taxes. Another third (33%) of the proposed new revenues come from temporary tax increases, delays in the scheduled phase-out of tax reductions, and other temporary tax changes. The balance (18%) comes from a variety of fund transfers, one-time revenues, and federal funds.