The committee that decides how much the state has to spend, called the Revenue Estimating Conference, will meet this morning to adjust forecasts for the budget lawmakers will craft in the spring session and discuss potential shortfalls in this year’s budget, which are expected to lead to mid-year cuts.
For five out of the last six years the state has had to undergo mid-year cuts, which often disrupt the spending plans for the state’s health care and higher education departments. The REC typically meets in December or January, but is meeting early this year to address pressing fiscal issues.
Falling oil prices and other underperforming revenue streams have negatively affected the budget. The current budget relies on oil prices averaging nearly $100 per barrel over the budget period, which lasts from July 1 to June 30. But oil has dropped to around $80 per barrel, throwing off that average.
For every dollar the estimated annual average is off, the state loses $12 million in its budget. The tax amnesty program that ends today could provide relief later in the budget year if it draws in more than the $100 million in expected revenue. The REC will meet at 11 a.m. in Committee Room A on the ground floor of the State Capitol. See the full agenda. —Kelly Connelly
