Dept. of Legislative Services warns that Governor's budget reductions fail to obtain budget sustainability 08-05-09

The Department of Legislative Services issued a policy analysis to legislative leadership that cautioned current budget cuts fail to obstain long-term sustainability.  The key points from this analysis were:

1)  "First, the actions taken so far contribute only modestly to establishing a more sustainable budget.  Much more remains to be done, and that remainder needs to be much more focused on durable changes."

2)  "Second, certain of the actions represent apparent policy confusion with respect to health care financing, particularly with respect to hospitals.  The July 22 plan contradicts previously expressed policy with respect to both uncompensated care assessments and day limits.  Is the waiver at risk or is it not?  

3)  "Last, embedded among the actions is a simple, and arguably justified action, that would credit interest on unspecified special fund balances to the general fund.  Nevertheless this concept will affect finances of the special fund agencies affected and will need to be reviewed carefully by both budget and policy committees"

Look below for the letter: