Legislative Approves State Budget Bill

The State Assembly on Wednesday (May 14, 2008) gave final legislative approval to a bipartisan compromise to plug a $527 million state budget hole.

The Assembly vote was 51-46. On Tuesday, the State Senate approved the budget repair bill on a 17-16 vote.

The proposal, which was endorsed 5-1 Monday by a legislative conference committee, protects general school aids and categorical school aids and fills the state budget hole largely by delaying $125 million in school aid payments by a few weeks, refinancing the state’s tobacco bonds to generate $209 million, and requiring the Department of Administration secretary to make $69 million in additional cuts. The proposal also closes two corporate tax loopholes used by large, out-of-state companies, such as Wal-Mart, to capture $15 million in lost state revenue.

The budget repair bill now heads to the desk of the governor for his consideration.

Posted May 12, 2008; Updated May 14, 2008