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Introduction 2011-13 State Budget

Explore the complexities faced during the 2011-13 budget cycle, including deficit dilemmas, revenue constraints, and decision-making struggles. Learn about tax and fee adjustments, appropriation balances, and managing federal stimulus. Discover the impact of budget repair bills and budget cuts on fiscal management.

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Introduction 2011-13 State Budget

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  1. Introduction 2011-13 State Budget • Because of the $3.6 billion deficit entering the 2011-13 budget cycle it was an extremely difficult process • We relied heavily on $2 billion in stimulus money from the federal government • Previous Administration postponed making difficult decisions • We had to make difficult choices and limited options– just like you • Raise revenue (ie taxes) • Cut Spending • Return to one time fixes • Raising revenue in this economy was not an option

  2. Additional Challenges • In addition to the budget deficit we faced these carry over “IOUs”: • Repay $234 million that was raided from the Patients Compensation Fund (court ordered repayment) • Overdue $65 million in reciprocity payments to Minnesota • The previous Administration used much of the federal stimulus money to backfill K-12 education in the previous budget • A weak economy and revenues made the task of balancing the budget extremely difficult

  3. 2012-13 General Fund Condition Statement* July 1st Opening Balance$73 Revenues(Taxes and Departmental Revenues) $14,392 Total Available$14,465 Net Appropriations $14,391 Gross Balance $74 Less Required Statutory Net Balance -$65 $9 *2012-13 is the “base year” for construction of the 2013-15 budget.

  4. Tax and Fee Changes in Budget Repair Bill and 2011-13 Budget • Prior to passage of the budget the legislature cut General Fund (GPR) taxes by $55.2m this year and $62.0m next year. • Thus the Budget Repair and 2011-13 Budget combined to produce net GPR tax and fee cuts of $140.8m. • There were 25 tax and 15 fee changes in the 2011-13 budget. Only 12 had a biennial impact, up or down, or more than $1m and a majority of those were fee changes. • The bulk of fee increases ($111.4m) comes from a 5.5% UW tuition increase. It should be noted that the budget actually capped the increase at the 5.5% rate which was already approved by the Board of Regents. It is the first time we have capped tuition in the budget.

  5. 2011-13 All Funds

  6. 2011-13 All Funds

  7. 2011-13 General Fund Taxes

  8. 2011-13 General Fund Taxes

  9. 2011-13 General Fund Appropriations

  10. 2011-13 General Fund Appropriations By Functional Area

  11. 2011-13 General Fund Appropriations By Purpose

  12. State Revenues and Federal Appropriations

  13. 2011-13 County & Municipal Aids

  14. Estimated 2012 General Transportation Aid Payments

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