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Budget update as of 1 p.m. Wednesday, Sept. 30, 2009

Avoiding a Government Shutdown

As we approach the deadline to balance the budget at midnight, I want you to know that House Democrats have approved the Senate's continuation budget. The House agreed to a continuation budget, with the Senate cuts, to avoid a government shutdown. The bill must return to the Senate for their final approval. If the Senate does not take their bill back up, the state may shut down. Thousands of workers around the state will be given notices not to come into work tomorrow if the Senate does not act.

In order to approve the continuation budget, the Senate must pass it with an immediate effect vote. "Immediate effect" is a procedural vote that waives the traditional 90-day waiting period rule and allows bill to be implemented immediately. The House will continue to send budgets to the Senate for them to approve as well.

At the time of this newsletter going out, the House has also passed the following other budgets:

• Higher Education - The House adopted the conference report that included federal stimulus funds to replace cuts to our state universities. However, the report cut some scholarship programs, including the Promise Scholarship. Overall cuts equaled an 8.5 percent reduction from last fiscal year.
• Department of Community Health - This budget is very contentious as it provides Medicaid funding and support for our most vulnerable citizens. It includes a significant cut to medical providers, which harms patients, doctors and hospitals. The conference report passed, but I could not vote to support it given the effect it will have on our community.

After a call of the House, in which members are locked down in the chamber, the House also took up and passed a separate supplemental bill to restore funding to a few select programs. These include:

• Reducing the revenue sharing cut from 13 percent to 3 percent. Thousands of police and fire personnel have already been laid off over the last few years.
• Restoring the Promise Scholarship program.
• Reducing the cut to Medicaid provider rates.

As we continue to approve other budgets, it is important to remember that the Senate must pass the continuation budget to prevent a government shutdown. I will send further updates as details emerge.

Sincerely,
State Representative Tim Melton
29th House District