State spending limit set at zero percent for FY 2011

After much discussion of operating and capital budget guidelines, the Spending Affordability Committee approved a recommendation to limit growth to zero percent in the FY 2011 budget.   This basically cuts the budget deficit in half , reducing it from $2 billion to $1 billion.  Republican members of the Committee asked members to “entertain a truly zero growth budget” by recommending a spending level of -7.44%.  If approved, this would have resulted in an approximate $2 billion reduction out of the discretionary portion of the General Fund budget, which is approximately $8 billion.  Because of mandated spending on medicaid and education, roughly 60% of the General Fund budget cannot be reduced.

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