BPW Adopts Governor’s Proposed Mid-Year Budget Cuts
In response to reduced revenue projections, last week the Hogan Administration proposed over $82.3 million in reductions to general fund appropriations in the current (FY17) budget. These reductions were approved today (Nov. 2) by the State Board of Public Works. Just under $27 million of the general funds being cut are projected to be replaced by fund transfers from funding sources.
The cuts are listed and described in this spreadsheet – which is also available here along with other related documents.
- DHMH — $20 million in Medicaid, to be replaced by additional funds received in the Cigarette Restitution Fund
- DHMH – $820,000 from the Kidney Disease Treatment fund to ‘reduce spending to reflect the three-year historical average of spending’
- UM System – $18 million withdrawal of general funds ($4 million to be offset), with 41 filled and 60 vacant positions eliminated – University System officials indicated to the BPW that the filled positions being eliminated could be achieved through attrition without lay-offs
- DJS – just over $9 million in reductions from residential per diems for youth committed to out of home placements ‘to align with population trends,’ noting declining residential populations in DJS facilities and that bed capacity exceeds average daily population
- Private Higher Ed – app. $4 million
from Sellinger formula aid program
- Morgan University – app. $1 million
(elimination of 12 vacant positions)
- DHCD – $7 million reduction in general fund capital (PAYGO) funds from various programs
- County Aid – app. $4 million (approximately 50%) reduction from formula increases to counties under the Disparity Grant program.
- Several other reductions cite reduced demand or caseloads, including $3.7 million being withdrawn from TCA (Temporary Cash Assistance) in DHR
In addition to the budget reductions, MDE (MD Dept. of the Environment) will revert app. $9.8 million in PAYGO funds at the end of the fiscal year, to be replaced by GO Bonds in FY 2018.