Monday, February 14, 2011

State Agencies Told to Brace for Possible 5 Percent Slash

Posted By on Mon, Feb 14, 2011 at 11:09 AM

It was only a matter of when. The Joint Finance Appropriations Committee has formally asked every state agency and department to submit a reply by this Thursday as to how a general fund reduction of 5 percent could be accomplished.

Governor C.L. "Butch" Otter's recommendations were "too optimistic," wrote Cathy Holland-Smith of the legislature's budget and policy analysis division. "The Co-Chairmen of JFAC have directed our office to notify all agencies that receive General Fund support to consider programmatic changes that support a lower spending level for FY 2012."

The letter included a schedule that forecasts 5 percent reductions to each department/agency, including a possible $60.8 million hit to public school support, $10.8 million to colleges and universities and $22.8 million to Health and Welfare/Medicaid.

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