As lawmakers return to Columbia tomorrow to resume this legislative session, they will already be prepared to deal with future budget shortages. Their plan includes a mechanism that will activate across-the-board cuts as soon as state revenues drop to a certain level.
Currently lawmakers don’t have that power. It’s in the hands of the state Budget and Control Board, on advice from the Board of Economic Advisers. Spending is cut when actual revenues are four percent below expected revenues, which are projected by the financial advisers. The proposed change would lower that to two percent, and the cuts would be automatic, unless all five members of the board vote against them. Currently the Board can ignore the trigger if it desires. [Read more...]







