September 21, 2024
Business

Budget problems make for gridlock in state legislatures

Furious budget battles in states around the country are forcing lawmakers to work well past the end of their regular sessions, and some say the compromises emerging so far ignore long-term solutions to states’ deep-rooted financial troubles.

The delays and gridlock come as no surprise to many lawmakers, since states overall are struggling with their worst fiscal crisis in decades. Some compare it to the years of the Depression.

In many states, little other work besides the budget is getting done.

“It’s very, very difficult,” said Washington state Rep. Bill Fromhold, vice chairman of the House budget-writing committee, where a predicted $2.6-billion deficit over the next two years has made for tough fights even within the major parties.

“The breadth of differences – they’re emphasized to a greater extent when you’re facing these kinds of financial challenges,” said Fromhold, a Democrat.

On Monday, he and his fellow lawmakers will gather again for an extended legislative session to try to settle on a spending plan. A special session begins Monday in Florida, while Arkansas and North Dakota finished overtime sessions last week.

Elsewhere, so far this year:

. Idaho, sparring over a sales tax increase pushed by GOP Gov. Dirk Kempthorne, held its longest legislative session ever before compromising in early May. “The most difficult session,” Kempthorne declared it.

. Arkansas’ GOP Gov. Mike Huckabee warned the legislature would force a government shutdown if it couldn’t agree on a spending plan. Lawmakers overcame a $110 million shortfall by tapping state trust funds and raising income and tobacco taxes.

. South Dakota lawmakers ran past midnight on the session’s final day for passing bills in early March, patching together a budget with a flurry of agreements on reducing employee raises and raising taxes on cigarettes and cell phone companies.

GOP Gov. Mike Rounds questioned the validity of the budget because the legislature went into a new day to pass it, but legislators argued a “legislative day” wasn’t the same as a calendar day. The courts said the budget was valid.

The next fiscal year begins in July for all but four states. By law, every state but Vermont must pass a balanced budget – even if the economic assumptions eventually don’t work out.

Financial analysts estimate that, overall, states have faced $78 billion in expected shortfalls for the coming fiscal year. Lawmakers have been cutting spending, borrowing money or raising revenue to overcome all that red ink. And next year could well be the fourth straight of weakening revenues.

Lawmakers in several states said they are worried they have only plugged budget gaps momentarily, and haven’t put their states on track to financial health.

“We have failed … at our most important task, putting our fiscal house in order. You should not feel comfortable going home,” Maryland state Delegate Howard P. Rawlings told colleagues last month.


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