This analysis of the Governor’s budget proposal for fiscal years (FY) 2018 and 2019 addresses both the revenue and expense side of the budget, assessing the proposed investments in children and families as compared with the current fiscal year’s (FY 2017) appropriated spending.
Faced with a deficit of $3.6 billion over the next two fiscal years, the Governor has proposed balancing the budget by relying on $1.36 billion in cuts, more than $600 million in new revenue, calling for $1.56 billion in public sector pay and benefit concessions, and shifting one-third of teachers’ pension costs to municipalities.
The Governor’s biannual budget proposal would reduce the Children’s Budget to 29 percent of General Fund spending in FY 2018 and 28.6 percent of General Fund spending in FY 2019.
Over the next two fiscal years, the Governor’s budget would reduce funding for early care and education by 12.3 percent, K-12 by 0.44 percent, higher education by 7.3 percent, and increase health and human services by 7.7 percent
The Governor’s budget proposal generates $607 million in new revenue largely by eliminating tax credits for low- and middle-income households, increasing taxes on tobacco products, and increased expectations of revenue collections.
More than 40 percent of new revenue is generated by raising taxes on low- to middle-income households.