H.F.A. Estimate: G.F. Up Slightly, School Aid Down In 2010-11

Compared to the current fiscal year, the general fund will see a slight uptick in available revenues, but the School Aid Fund will see a $215 million hit under revenue predictions released by the House Fiscal Agency on Wednesday.

While the Senate Fiscal Agency has predicted a $1.8 billion deficit in the coming budget year, the House’s analysis was more optimistic about the state and national economy’s rebound in 2011. However, the Senate Fiscal Agency was much more optimistic about the School Aid Fund than the House Fiscal Agency.

The HFA report was released in preparation for the Revenue Estimating Conference scheduled for 9 a.m. Monday.

The HFA report showed the general fund will rise $44 million over the current fiscal year, while the School Aid Fund will drop $215 million, or 1.8 percent. The Senate Fiscal Agency’s forecast projected a drop of $162.7 million in the general fund and a $58.8 million decline in the school aid fund.

With its estimates, the HFA expects the state will be $8.2 billion below its constitutional revenue limit in the 2010-11 fiscal year.

The bulk of the $1.8 billion deficit forecast by the SFA stems from the loss of one-time federal stimulus money.

Source: Gongwer News Service, 1.6.09