The Legislature writes a biennial budget in every odd-numbered year. They write a supplemental budget in even-numbered years. There are separate budgets for operating expenses, capital (buildings) and transportation.

The state determines how much money it can budget based on quarterly revenue forecasts, written by the Economic and Revenue Forecast Council. The revenue forecasts are predictions of how much tax revenue the state will collect, based on analysis of global markets and economic indicators here. If the economy changes rapidly after the Legislature has written the budget, revisions are necessary.

In 2009, the Legislature faced an estimated $9 billion difference between what they’d collect in taxes and what they expected to spend on existing programs. Federal stimulus money helped patch the budget, requiring fewer cuts. But the 2010 Legislature faces an estimated $2.6 billion in cuts.

For the latest budget information from the Office of Financial Management, visit here.

For the latest revenue forecast news, visit the Economic and Revenue Forecast Council here.

The House budget-writing committee can be found here. The Senate’s Ways & Means committee is here.

Questions? E-mail nikir@tvw.org.