About $223 million of the Rainy Day Fund will be used to balance the 2010 fiscal year budget; the rest will be available for the 2011 fiscal year.
To receive about $1.2 billion in stimulus funds, the state was required to maintain certain funding levels for public education and health care.
The budget agreement, coming days before Monday’s start of this year’s legislative session, applies only to the current 2010 fiscal year.
No decisions have been made for the 2011 fiscal year, which starts July 1.
The proposal will be presented next week to legislators. Legislative leaders are hoping for quick passage so lawmakers can focus on the 2011 budget.
The state is projected to have a $729.4 million revenue shortfall this fiscal year. Cuts already announced have reduced the projected deficit to about $530 million.
For the 2011 fiscal year, legislators are faced with developing a $5.3 billion budget, which is about 20 percent, or $1.3 billion less, than the budget approved last year.
The 2010 fiscal year budget of $7.2 billion was made up of about $6.6 billion in state revenue and about $630 million in federal stimulus funds.
Capitol Bureau Blog