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FY 2011:
For the current fiscal year Deal lowered the revenue estimate by $27.5 million while also adding more money for K-12 schools mostly to make up for increased enrollment. Most state agencies will have to enact 4 % cuts for the rest of FY2011, although most agencies have been aware that this could be the case, and so have been preparing for the formal ask.
FY 2012:
For 2012, Governor Deal believes state revenue will be 3.75% higher than the current fiscal year, but the need to replace more than $1 billion in federal stimulus money, which goes away at the end of FY 2011 will negate much of that growth. That said, state agencies are being asked to cut their budgets by an average of 7%.
What’s Next:
The budgets now go to the House Appropriations Committee which traditionally amends the budget, but cannot change the revenue estimates.

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