The Legislature passed a balanced budget of 11.74 billion for fiscal year (FY) 2014 and 159.24 billion in FY2015, $124.57 million below the governor’s initial request. The final version of the budget, HB1700, followed downgraded economic projections by the Council on Revenues in March, which makes forecasts about the state’s economy. The new forecasts included an estimated 0 percent growth in FY2014, down from its initial estimate of 3.3 percent growth.
In early March, the House cut $123.53 million from the governor’s Executive Supplemental Budget for the 2013-2015 biennium. Shortly afterwards, the Council in Revenues reduced the revenue projections it made in January, which was primarily attributed to reduced visitor spending. The downgrades translated into nearly $500 million less for FY2014 and FY2015.
In April, the Senate made further reductions to the budget. The governor also proposed several cuts from his proposals, such as reducing Housing First funding to $0.5 million from $1.5 million and REACH Initiative funding to $1.1 million from $3.1 million. The House and Senate made additional adjustments in Conference Committee.