State Budget Agreement Reached

Late yesterday, it was announced that Gov. Brad Henry and Republican legislative leaders, Speaker of the House Chris Benge and Senate President Pro Tempore Glenn Coffee, had reached agreement on the state budget for FY 2010. According to their joint news release:

The agreement would spend three-eighths of the Rainy Day fund, or $223.5 million, for the budget shortfall in fiscal year 2010. The remainder of the FY10 shortfall will be filled with other state funds, federal stimulus dollars and revenue generated from previously announced targeted budget cuts to agencies.

The deal would also move a second three-eighths of the Rainy Day fund, or another $223.5 million, into the state’s Special Cash account.

If needed, the funds would be available for appropriation in the fiscal year 2011 to offset the shortfall certified by the Board of Equalization this week.

The agreement will leave one-fourth of the current Rainy Day Fund proceeds in the reserve account. A portion of those dollars could also be accessed if state leaders deemed it necessary later in session.

The agreement also directs additional state funds to education, health care and other areas and preserves a larger share of stimulus dollars for use later in the session.