February 1, 2002:

BUGET ISSUES DOMINATE EARLY DAYS OF 2002 SESSION

It is not unusual for a state legislature to devote most of its energy on money issues. However, after drastic revenues losses due to a slowing economy and a country adjusting to the attacks in September, state leaders aree devoting more than the usual interest on money matters this year. The Governor, as early as October, set the tone for this year's session when he called for state agency heads to slash 2.5% from the current budget and another 5% from upcoming FY 03 spending. He made specific recommendations during his annual budget speech the first week of this year's assembly.

Legislators now are faced with the process of determing how much influence they have or are willing to exert to adjust the Governor's proposals in the supplemental and upcoming budget. Public hearings and meetings have begun. Private discussions are being held. Elected and appointed officials are looking closely at revenue and spending figures and it seems that there is an air of acquiescence to the Governor's projections. To be sure, some "tweaking" will be done, but do not expect the final version of the supplemental budget or the FY 03 budget to depart too significantly from what was proposed by the Governor.