State budget conflicts, 2017

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One of the key functions of state governments throughout the country is setting a state budget, an often complex piece of legislation that projects how much money the state will raise through taxes and other sources of revenue and how much it will spend on government services such as healthcare, roads, and education. For 46 states, budgets operate along fiscal years that run from July 1 to June 30; the four states that operate along other timelines are New York, Texas, Alabama, and Michigan. A state budget might sound like a simple concept, but the process behind it often breeds conflict. In a nutshell, state budget processes involve usually more than 100 elected officials—all with varying political ideologies and philosophies on state spending, taxes, and public policy—reaching an agreement within the span of just a few months. While that process unfolds, numerous pressures bear down upon them: their constituents' interests, groups from inside and outside the state, upcoming elections, party leadership, and lobbyists, just to name a few.

Throughout the 2017 state legislative season, Ballotpedia tracked 10 state governments whose budget processes involved conflict or had the potential to result in a partial government shutdown or spending cuts to government services. These states included three states with Democratic state government trifectas, one state with a Republican trifecta, and six states with divided governments. A state government trifecta is a term used to describe single-party government—when one political party controls the legislative and executive branches of a state's government. The 2017 state legislative sessions began with a total of six Democratic trifectas, 25 Republican trifectas, and 19 states under divided government.

Click on the tabs below to learn more about these state's 2017 budget processes.

2017 state budgets[edit]

Connecticut[edit]

Background[edit]

  • Gov. Dan Malloy (D) and members of the Connecticut General Assembly failed to reach a budget agreement during the 2017 legislative session, which adjourned on June 7.[1] According to The Connecticut Mirror, House and Senate Democrats were unable to agree on a budget plan ahead of the June 30 deadline, and there was disagreement between the parties. Key issues included tax increases, funding for social programs, and labor relations with the state employees union.[2]
    • On June 30, 2017, Malloy signed an executive order authorizing reduced amounts of government funding in the absence of a budget for fiscal year 2018. This order allowed Connecticut to avoid a shutdown of government services on July 1, the first day of the 2018 fiscal year. Funding for road repairs, state aid for school districts, and nonprofit organizations were reduced under Malloy's executive order.[3]
    • On August 18, 2017, Malloy revised his executive order to change the amounts of the Education Cost Sharing payments that go to school districts. Under his revisions, the 30 lowest-performing school districts saw no change to their cost-sharing payments, 54 districts received reduced payments, and 85 districts received no state payment. The order went into effect in October because no budget was approved.[4][5]
  • Malloy pushed for lawmakers to call a special session before June 30 and pass a 90-day temporary budget. Speaker of the House Joe Aresimowicz (D) declined the idea, saying that he and the House Democratic Caucus wanted to first see an outline of a two-year budget before agreeing to a temporary budget.[2] Leaders in the Connecticut State Senate, including President Pro Tempore Martin Looney (D), were supportive of a 90-day temporary budget.[6]
  • The budget was not passed due to disagreements between Malloy and the General Assembly, disagreements among members of the Democratic caucus, and disagreements between Democratic and Republican legislators.[7] According to The Hartford Courant, House Democrats were divided between a faction trying to prevent cuts to social services and a faction trying to prevent tax increases.[8] When talking about the divisions within the Democratic caucus, State Rep. Vincent Candelora (R) said, "I think everybody in this building realizes a budget cannot pass without Republican support."[9]
  • As of July 6, 2017, Connecticut faced a $5.1 billion budget deficit during the 2018 and 2019 fiscal years. The spending provisions in Malloy's executive order resulted in a $2.1 billion spending reduction during the 2018 fiscal year.[1] On July 31, the General Assembly passed a labor concessions deal negotiated with state employees unions that was designed to save $1.57 billion in fiscal years 2018 and 2019. With the concessions deal approved, the budget deficit decreased from $5.1 billion to $3.5 billion.[10]

Timeline of key events[edit]

  • On October 31, Gov. Malloy signed most of the budget that passed on October 26. He vetoed a portion of it dealing with the state's hospital tax, also called a provider fee. The tax was increased from six percent to eight percent in the budget, although the hospitals would have received millions in Medicaid funding from the federal government due to the tax increase. According to Malloy, the wording of the hospital tax contained issues and would have cost the state $1 billion. Malloy said, "I strongly urge my colleagues in the General Assembly to convene as soon as possible to pass a legal alternative to the illegal hospital tax and troublesome supplemental payment and rate language presented in the bill."[11]
    • With Malloy's signature, Connecticut ended a 123-day period without a budget. This was the longest period of the time the state had ever went without a budget. The second-longest period was in 1991 when legislators debated whether to create a state income tax.[11]
    • On November 15, the Connecticut House voted 123-12 to approve a bill that proponents said fixed flaws in the state budget signed on October 31, including a provision dealing with the state's hospital tax. The Connecticut Senate voted 34-0 on November 14 to pass the bill. Gov. Malloy said he would sign the bill into law. Opponents of the budget fix said that it would require towns to assume $8.5 million in costs from a renters’ rebate program and that the costs would not be equitably distributed based on a community's income level.[12][13]
  • On October 26 at around 2:00 AM ET, the Connecticut State Senate passed a budget deal by a 33-3 vote.[14] Later that day, the Connecticut House passed the budget by a 126-23 vote. Both margins were sufficient to override a gubernatorial veto.[15] After the budget passed, Kelly Donnelly, Gov. Malloy's communications director, said that the budget contained an error related to the tax on hospitals that would cost the state $1 billion. Legislative leaders in the state House said that the chamber would reconvene the following week if an issue in the budget needed to be addressed.[16]
  • Here are some of the details of the budget that was agreed to on October 26:[14]
    • Revenue: The budget deal made no changes to Connecticut’s sales or income taxes. It increased the cigarette tax, put a $10 surcharge on motor vehicle registrations, and required a $0.25 fee for Uber and Lyft rides. It also required teachers to contribute one percentage point more toward their pensions and increased the hospital provider fee from six percent to eight percent (although the tax the hospitals pay was reimbursed by the federal government in Medicaid funding).
    • Spending: The budget included up to $40 million to help the city of Hartford avoid bankruptcy. It also restored most of the education and municipal funding that was reduced by the executive order Gov. Malloy used to fund government programs during the stalemate. For the 2018 fiscal year, 136 of 169 municipalities had their education funding decreased by five percent. For the 2019 fiscal year, 88 municipalities had the same amount or less education funding than they did in 2017, while 81 had an increase in funding compared to 2017. The budget included $65 million in cuts per year for the University of Connecticut and it scaled back several tax credits, including the property tax credit and the earned income tax credit. Moreover, it put caps on spending and borrowing by the state and required the state legislature to vote on all state employee union contracts.
  • On October 23, Republican and Democratic leaders announced that they had agreed to the specifics of a budget deal. Senate Republican Minority Leader Leonard Fasano said the deal included some of his party’s priorities such as a cap on spending and borrowing and the establishment of an independent panel to recommend changes to the state’s pension program. The deal also increased the taxes on cigarettes and decreased taxes for Social Security and pension recipients.[17]
  • On October 18, Republican and Democratic legislative leaders announced that they had reached an agreement on the major provisions of a $40 billion two-year budget plan. The deal was negotiated without input from Gov. Malloy.[18]
  • On October 13, Standard & Poor's notified Connecticut that it was changing its outlook for the state's general obligation bonds from stable to negative.[19] On October 16, Moody's Investor Service announced that it was considering credit downgrades for 26 Connecticut municipalities and three regional school districts, all of which saw funding reductions as a result of the budget stalemate. Twenty-five other municipalities and three other regional school districts were assigned negative outlooks.[20][21]
  • On October 3, the Connecticut House chose not to vote on a veto override of the Republican budget plan that passed on September 16.[22]
  • On October 1, education payments to cities and towns were reduced or eliminated under an executive order signed by Gov. Malloy. The funding cuts went into effect because a budget had not been agreed to.[23][24] On October 11, the Connecticut Education Association—the state’s largest teachers’ union—filed a lawsuit claiming that education cuts would prevent schools from providing an adequate education for students. Connecticut’s school funding had previously been challenged in the courts for being too low.[25][26]
  • On September 28, Gov. Malloy vetoed the Republican budget plan that passed on September 16. Senate Republican Minority Leader Fasano called for the General Assembly to override the veto. A veto override requires 101 votes in the state House and 24 votes in the state Senate.[27]
  • On September 16, the Connecticut General Assembly approved a budget plan drawn up by Republican legislators. The budget included $40.7 billion in spending over the FY2018-2019 biennium. Gov. Malloy said he would veto the budget because of its spending reductions for higher education and other state programs. The budget also included changes to relations with state employees labor unions.[28]
    • The budget passed due to defections from Democrats in both chambers who joined with the Republican minority. Their defections came after Malloy and Democratic legislators had apparently reached an agreement on September 14. Their budget plan included new taxes on cell phone bills, vacation homes, hospitals, cigarettes, smokeless tobacco and hotel rooms.[29] The Democratic legislators who voted for the Republican plan said the reason they defected was because of tax increases in the Democratic plan.
    • The Connecticut House passed the budget on September 16 at around 3:00 AM EST by a 77-73 vote. Democratic Reps. Pat Boyd, Lonnie Reed, Daniel S. Rovero, John Hampton, and Kim Rose defected from their party.[30]
    • The Connecticut Senate passed the budget on September 15 by a 21-18 vote. Democratic Sens. Paul Doyle, Gayle Slossberg, and Joan Hartley defected from their party. Their defections were unexpected and were not announced prior to a floor speech by Doyle where he said he would vote for the Republican plan.[31]

Labor relations[edit]

  • On July 31, the Connecticut General Assembly passed a labor concessions deal that was negotiated with state employees unions. The concessions deal was designed to save $1.57 billion in the 2018 and 2019 fiscal years. The Connecticut State Senate passed the deal on July 31. The chamber vote split 18-18 with all Democrats in favor and all Republicans opposed. Lieutenant Gov. Nancy Wyman (D) cast a tie-breaking vote to pass the deal.[32] The Connecticut House passed the deal on July 24 by a 78-72 vote, with all Republicans and Democrat John Hampton opposed.[33]
  • The concessions package was announced in June 2017 by Gov. Malloy and state employee union leaders. It amended the existing labor agreement by extending its end date from 2022 to 2027 and achieving $1.57 billion in savings in the 2018 and 2019 fiscal years. The provisions in the agreement that increased savings included a three-year wage freeze for some state employees and increased contributions for health and pension benefits.[2] On July 18, unions announced that rank-and-file members approved the concessions package by a margin of 83 percent to 17 percent. Concessions packages can be approved by the General Assembly, although it is not required for them to take effect. If a concessions deal is not approved by the General Assembly, it goes into effect the following year.[34][35][36]
  • According to The Hartford Courant, Republican legislators proposed a plan with $2 billion in savings for the state in the 2018 and 2019 fiscal years.[34] Republican leaders expressed interest in changes to collective bargaining and other ways that state employees were compensated. House Republican minority leader Themis Klarides said that the state should end collective bargaining and instead allow the General Assembly to craft wages and benefits for state employees.[37] Senate Republican minority leader Leonard Fasano said that the state would save money by changing aspects of collective bargaining, eliminating two state holidays, and prohibiting meal and clothing allowances.[38]
  • Compensation levels for members of state employee labor unions in Connecticut, including wages, pensions, and health benefits, were reached through collective bargaining. As of January 2017, about two-thirds of government workers in Connecticut, including teachers, professors, and prison guards, belonged to a labor union.[39]
  • See also: Connecticut General Assembly and Governor of Connecticut

Delaware[edit]

  • Trifecta status as of July 2017: Democratic Trifecta
  • On the morning of July 3, 2017, Delaware Gov. John Carney (D) signed into law a budget passed by the Legislature on July 2, 2017. The state began the 2018 fiscal year without an annual budget in place and was one of six states Ballotpedia tracked in 2017 that were on the verge of a partial government shutdown or the implementation of spending cuts to nonessential government services. The Legislature passed a temporary funding package on July 1, 2017, in order to avoid a partial government shutdown. Delaware’s budget debate throughout the 2017 regular session centered largely on Democratic proposals to raise the personal income tax rate and Republican proposals to alter the state’s prevailing wage laws—neither of which ultimately made it into the final budget. Lawmakers agreed to a series of tax increases on real estate sales, alcohol, and cigarettes in order to address a projected $390 million shortfall.[40][41]
  • See also: Delaware General Assembly and Governor of Delaware

Illinois[edit]

  • Trifecta status as of July 2017: Divided Government
  • In 2017, disagreements between Governor Bruce Rauner (R) and the Democratic-controlled Illinois General Assembly over the state budget drew national attention when S&P Global Inc. and Moody’s Investors Service downgraded Illinois' credit rating and some government services, including transportation projects and the state lottery, were on the verge of being shut down.[42][43] Rauner and the legislature failed to come to an agreement on a budget during the regular session, which ended on May 31, leading Rauner to call a special session from June 21 to June 30, the last day of the 2017 fiscal year. A budget agreement was not reached before June 30, meaning Illinois entered the 2018 fiscal year without a budget.
  • A budget was passed on July 6, 2017, when the legislature overrode Rauner's vetoes of a $36 billion spending plan and a $5 billion tax increase. In the votes in the Illinois House, 10 Republicans joined the Democrats in voting for the overrides. Up to this point, Illinois had not passed a budget since 2014, when Pat Quinn (D) served as governor. According to The Associated Press, two years was the longest any state had gone without a budget in recent memory.[44]
  • Important issues surrounding the budget debate included differences in Democratic and Republican plans concerning income tax rate increases, a property tax freeze, changes to regulations related to injured worker compensation, and the state's pension liabilities. The budget deal that eventually passed increased the personal income tax rate from 3.75 to 4.95 percent, increased the corporate tax rate from 5.25 to 7 percent, and left overall spending at $36 billion for fiscal year 2018.[45]
  • The budget had an impact beyond the state, costing Wisconsin millions from its state budget. This was because, as of July 2017, Illinois and Wisconsin had a reciprocity agreement to account for the greater number of Wisconsinites that cross the state border to work in Illinois, but not pay state income taxes, than Illinoisans who came to work in Wisconsin. With higher incomes taxes in Illinois, Wisconsin's reciprocity payment increased.[46]
  • Coverage of the budget negotiations centered on the relationship between Rauner and Speaker of the House Michael Madigan (D).[47] As of July 6, 2017, Rauner was seeking re-election as governor in 2018 and Madigan was defending the Democrats' 67-51 majority in the state house. Rauner and Madigan disagreed on a number of issues including whether the income tax increases should have been permanent.[48]

Education funding[edit]

  • $8.2 billion in state aid for public schools was included in the budget agreement. However, language was also included that said $6.76 billion of the aid had to be dispersed through a funding formula that calculated state aid for school districts based on the cost of strategies that supporters say are proven to improve student performance. The funding for districts could be increased by elements such as income, property wealth, and English-learning needs.[49][50][51] On August 29, the Illinois General Assembly passed a bill that included the necessary funding formula. Read more the timeline of events below.
  • On May 31, the Legislature passed SB 1, which contained the necessary funding formula. Gov. Rauner indicated that he would veto the bill, causing Senate President John Cullerton (D) to hold it in the chamber.[52] According to Rauner's office, the governor would not support the bill because he believed it would benefit Chicago at the expense of other areas of the state.[53]
  • On July 24, Rauner called the General Assembly into a special session starting July 26 to address education funding. He had set a deadline of 12:00pm CT on July 24 for Cullerton to send him SB 1 so that he could use his amendatory veto power to make unspecified changes to the provisions he disagreed with. When the deadline passed without Cullerton sending him the bill, he called the special session.[54] On July 31, the last day of the special session, SB 1 was transmitted to Rauner.[55]
  • Rauner issued an amendatory veto on August 1, rewriting SB 1 to remove a $250 million block grant to Chicago Public Schools and changing how the funding formula determines state aid.[56] According to the Illinois State Board of Education, Rauner's changes would result in a $463 million decrease in funding for Chicago Public Schools in the 2017-2018 school year.[57] The Illinois Senate met on August 13 and overrode the veto by a 38-19 vote, with all Democrats and Republican Sam McCann voting to override.[58] The Illinois House was scheduled to vote on the override on August 23, but Speaker Madigan cancelled the vote on August 22. He said that progress had been made in negotiations with Rauner and Republicans.[59][60][61]
  • On August 24, the four leaders in the General Assembly— Madigan, Cullerton, Senate Minority Leader Bill Brady (R), and House Minority Leader Jim Durkin (R)— announced that they had reached a compromise agreement on SB 1. According to Politico, the agreement kept the funding formula from SB 1 and included $75 million in subsidies for private school education.[62] On August 28, 2017, the Illinois House rejected the agreement in a 46-61 vote.[63] The chamber next voted on an override of SB 1. After the override vote received just 63 of the 71 votes it needed to pass, the chamber took up the compromise bill again and passed it 73-34.[64] On August 29, the Illinois Senate passed the compromise bill by a 38-13 vote.[65] Gov. Rauner signed the bill into law on August 31.[66]
  • According to The Chicago Sun-Times, some schools in low-income areas cannot remain open without the state money that is allocated by the budget.[49] In addition to the state aid in the budget, education funding in Illinois also comes from property taxes levied by local governments. Areas that pay more in property taxes can spend more on schools and are less dependent on state aid.[67]
  • See also: Illinois General Assembly and Governor of Illinois

Maine[edit]

  • Trifecta status as of July 2017: Divided Government
  • A partial government shutdown ended in Maine on July 4, 2017, after Governor Paul LePage signed a $7.1 billion, two-year budget passed by the legislature. The final compromises were over the elimination of a proposed lodging tax increase and the allocation of additional money for public education. House Republicans were able to see the removal of an increase in the lodging tax from 9 percent to 10.5 percent. Democrats got additional funding to Head Start and Clean Election programs, as well as $162 million to go towards K-12 spending.[68]
  • Non-essential government services—such as state parks and Bureau of Motor Vehicle offices—were shut down after a budget had not been signed by July 1. The last time Maine’s government shutdown was a 16-day shutdown in 1991.[69] The 2017 shutdown was resolved after three days. Maine’s legislative session was originally scheduled to end on June 21, but lawmakers voted to extend the 2017 legislative session by five days, not required to be concurrent. The cost of the five-day extension of the session was estimated to be $94,600.[70]
  • The key issue throughout much of Maine’s 2017 legislative session was a voter approved ballot measure called Question 2, which authorized an additional 3 percent tax on the portion of any household income exceeding $200,000 per year and earmarked the revenue to fund public education. The budget deal included the repeal of Question 2.
  • See also: Maine State Legislature and Governor of Maine

Massachusetts[edit]

  • Trifecta status as of July 2017: Divided Government
  • Massachusetts’ 2018 fiscal year began on July 1, 2017, without a state budget. Gov. Charlie Baker (R) signed a $5.2 billion stopgap budget in late June 2017 to keep the government operating at the start of the 2018 fiscal year. Throughout the 2017 legislative session, Massachusetts faced a $733 million shortfall from fiscal year 2017. The proposed 2018 budget assumed a 3.9 percent increase in revenues from fiscal year 2017, but tax revenues increased about 1.2 percent in the past fiscal year. House and Senate budget negotiators held meetings to address the tax revenue shortfall and its impact on the $40.3 billion spending plan for 2018. As of July 2017, both chambers had already passed versions of the 2018 spending plan, but the plans needed to be revised because the original ones were based on tax revenues growing at 3.9 percent.[71]
  • On July 7, 2017, the Massachusetts state legislature approved a $40.2 billion state budget plan. The budget closes a $733 million budget gap from the 2017 fiscal year. The plan projects tax revenues to grow at 1.4 percent, a decrease from the previous estimate of 3.9 percent. The comprised budget cuts about $400 million from the budgets that were passed by the House and Senate months ago. The budget increases spending on education and local aid but cuts and reduces funding in multiple areas. The budget reduces funding to help cities and towns pay for special education costs and eliminates $104 million for a reserve fund to cover spending in local sheriff offices and the state public defender agency.[72][73]
  • On July 17, 2017, Gov. Charlie Baker (R) signed a $39.4 billion state budget. He vetoed $320 million in spending from the plan. He eliminated $200 million in new employers fees to offset the rising costs of MassHealth, the state’s Medicaid program. The budget also revised tax revenue projections downward for the year by $750 million.[74][75]
  • In August 2017, Gov. Baker signed a bill that will increase the medical assistance contribution by Massachusetts employers to offset the rising costs of MassHealth. The new fees will raise $200 million. Employer medical contributions will increase from $51 to $77 per employee. Employers with workers enrolled in MassHealth will have to pay $750.[76]
  • As of September 2017, Democrats held veto-proof majorities in both chambers of the legislature. Two-thirds of the members present in each chamber—107 seats in the House and 27 seats in the Senate—are required to override a veto. With two vacancies, Democrats held a 32-6 majority in the Senate. Democrats had a 124-35 majority with one vacancy in the state House.
  • Veto overrides: Funding will be restored to the budget only if both chambers of the Legislature override Gov. Baker's line-item vetoes.
  • House: In September 2017, the state House voted to override 112 of Gov. Baker's line-item vetoes in the annual budget. These overrides restored $284 million in spending to the budget.[77][78] On October 4, 2017, the House voted to restore $36 million to the 2018 budget. The House finished restoring the $320 million that Gov. Baker vetoed from the budget.[79] Total restored: $320 million.
  • Senate: On September 28, 2017, the state Senate voted to override 26 of Gov. Baker's 169 line-item vetoes from the state budget. The overrides restore $24.9 million in funding to the budget.[80] On October 4, 2017, the Senate voted to restore $14.9 million to the state budget.[79] In mid-October, the Senate voted to restore about $35 million in funding to the budget.[81] In early November, the Senate voted to restore $840,000 to the budget.[82] Before the legislature entered an informal session on November 15, the Senate overrode four of Baker's budget vetoes. The four vetoes restored about $3.2 million to the budget.[83]Total restored: $79.8 million.

New Jersey[edit]

  • Trifecta status as of July 2017: Divided Government
  • New Jersey's three-day partial government shutdown came to an end on July 4, 2017, after Gov. Chris Christie (R) signed a $34.7 billion state budget into law.[84] The New Jersey government went into a partial shutdown on July 1, 2017, after Democratic leadership in the Legislature and Christie failed to reach an agreement over the budget by the start of the new fiscal year. New Jersey last experienced a partial government shutdown in 2006. The budget impasse in 2017 centered on a proposal by Christie to restructure Horizon Blue Cross Blue Shield, the state's largest health insurance company. Christie said he would not sign the budget, which included over $325 million in funding for Democratic priorities, unless it included the Horizon legislation. Both Christie and Senate President Stephen Sweeney (D) were in favor of including legislation in the state budget that would allow for more government oversight of the insurance provider. The legislation would have also required Horizon to dedicate its excess surplus to fund drug treatment programs. Assembly Speaker Vincent Prieto (D) opposed the legislation, arguing that it could increase premiums for Horizon's policyholders. Fearing that Christie might line-item veto Democratic-backed proposals in the budget if the Horizon legislation was not included, many members of the Legislature abstained from voting on the budget which led to the shutdown.[85]
  • On July 3, 2017, the Legislature and Christie reached an agreement to end the shutdown but the legislation was not signed until the early morning of June 4, 2017. The $34.7 billion budget included increased spending for education and healthcare and also established a cap on Horizon's reserves. Instead of the excess surplus going to fund drug treatment programs, the budget required the money to be used to limit future premium increases for Horizon's 3.8 million policyholders. The legislation also added two public members to Horizon's board.[86]

Pennsylvania[edit]

  • Trifecta status as of July 2017: Divided Government
  • On June 30, 2017, the Republican-controlled Pennsylvania General Assembly sent Gov. Tom Wolf (D) a $32 billion spending plan for the fiscal year that began on July 1. The budget increased by 1.6 percent over the 2016-2017 budget, leaving a projected $1.5 billion shortfall from the previous year. Collectively, the state began the 2018 fiscal year with a $2 billion budget gap. The House approved the budget 173-27, while the Senate approved it 43-7.
  • On July 6, the credit-rating agency S&P Global Ratings announced that it had placed Pennsylvania on what it called a "negative credit watch." The agency stated, "Pennsylvania has repeatedly had protracted budget negotiations that failed to result in structural alignment." A decreased credit rating would increase borrowing costs for the state.[87]
  • On July 10, Wolf announced that he would allow the budget to become law without his signature and without a revenue plan in place. In a statement, he said, "In the coming days, it is my hope that the General Assembly will come together to pass a responsible solution to balance our books." In Pennsylvania, the governor has 10 days to sign or veto legislation after receiving it or it automatically becomes law. Wolf did not sign the 2016-2017 state budget either, which also went into effect without a revenue plan in place.[88][89]
  • On July 27, the state Senate, with support from Gov. Tom Wolf (D), passed a revenue package that included a severance tax on gas and oil companies worth an estimated $100 million per year. A severance tax is a tax placed on the extraction of nonrenewable resources. Energy companies in the state opposed the severance tax, arguing that it would make the state less competitive and hurt consumers. The senate plan also proposed increases for utility bills and borrowing $1.3 billion against funds that the state receives from a 1998 legal settlement with tobacco companies. The legislation passed 26-24 with support from both Democrats and Republicans and was sent to the House.[90]
  • On October 25, the legislature approved a gambling expansion bill that would legalize online casino and lottery games, authorize 10 new casino locations in the state, and allow casino-style gambling games in truck stops and airports. That bill would raise an estimated $200 million per year in license fees and taxes on higher gambling losses. A $1.5 billion borrowing plan and estimated tax increases of $140 million per year were approved that same day; patching up about $1.8 billion of the $2.3 billion budget deficit.[91] On October 31, Gov. Wolf signed the budget legislation.[92]

Background[edit]

  • Major proposals for revenue packages throughout the 2017 legislative session included borrowing money, expanding gambling and liquor sales in the state, and tax increases. Senate and House Republicans voiced support for temporary measures to borrow against state accounts, while Republicans in the House also advocated for delaying a vote on legislation that provides funding various universities in the state. Wolf advocated for tax increases on certain business practices and the natural gas industry.

Rhode Island[edit]

  • Trifecta status as of July 2017: Democratic Trifecta
  • A debate over motor vehicle taxes between Democratic leadership in the Rhode Island state Senate and House led Rhode Island to enter the 2018 fiscal year without a budget in place. Leading up to the deadline on June 30, 2017, House Speaker Nicholas Mattiello (D) had advocated for a six-year-phase repeal of motor vehicle taxes in Rhode Island. The House approved the repeal in a budget plan—which also included a proposal backed by Gov. Gina Raimondo (D) for tuition-free community college—on June 23, 2017, in a 64-11 vote. When the Senate took up the budget on June 30, 2017, it voted 30-5 in favor of an amendment that would suspend the car-tax repeal if state revenues prove lower than projected or if the economy declined. Mattiello protested the amendment, calling it a last-minute change and dismissed the House for summer recess before a vote could take place. Senate President Dominick Ruggerio (D) stated that Mattiello was aware of concerns voiced in the Senate about the financial sustainability of repealing the motor vehicle tax. Mattiello later said he had no plans to call the House back from recess.
  • In a press conference on July 5, Raimondo stated that she intended to find new revenue sources to cover the $2.75 million needed for the free community college plan that she supported throughout the regular session. She also criticized the Legislature over its standoff.
  • On July 6, 2017, Ruggerio stated in an op-ed that the House proposal for the motor vehicle tax repeal did not do enough to protect the state’s rainy day fund, and he called on Mattiello to call the House back into session:[96]
The budget adopted by the House of Representatives did not protect the state’s rainy day fund from Speaker Nicholas Mattiello’s car tax phaseout in the event of a future recession or cuts to federal aid. … No one, not even the speaker, wants to see this phaseout succeed more than I. … We encourage the speaker to reconvene the House to take up these matters. In the meantime, the Senate will thoroughly review all legislation that comes before us and pass that which we deem is in the best interest of all Rhode Islanders.[97]
  • On July 8, Mattiello released his own op-ed, in which he stated that Ruggerio had backed out of a deal and that the Senate amendment was neither needed nor appropriate:[98]
It is unfortunate that Senate President Dominick Ruggerio and his leadership team reneged on a commitment to pass the state budget as negotiated, and did so at the eleventh hour, without warning. These last-minute shenanigans only increase public distrust and threaten our ability to serve citizens responsibly. … The Senate’s budget amendment would stop the car-tax phaseout if a very specific series of events occurred. This limit does not apply to any other budget measure, nor is it appropriate in this case. Future legislatures will consider the full array of state spending and revenues when facing any downturn. I do not favor language that, at the outset, would subordinate car-tax relief to other priorities.[97]
  • Mattiello and Ruggerio held a meeting on July 18, 2017. After the meeting, both released statements describing it as productive. Rhode Island Public Radio reported that Ruggerio was considering having the Senate take up the original House version of the budget without the Senate amendment. Mattiello, on the other hand, was reportedly considering holding a special session in the Fall to consider other legislative initiatives that the budget standoff held up.[99]
  • The standoff concluded on August 3, 2017. After a series of meetings in late July and early August, Mattiello and Ruggerio reached an agreement in which the state Senate would pass the original budget without the amendment if the state House agreed to pass legislation requiring the state Department of Revenue to conduct an annual study of tax repeal beginning in 2021. The Senate vote was 30-5. Gov. Gina Raimondo (D) signed the budget shortly after receiving it.[100]

Background information[edit]

  • In 2004, Rhode Island enacted a law allowing the state to continue operating at the previous year’s spending levels when a budget is not passed by the June 30 deadline.[101][102][103]
  • In Rhode Island, the governor has the power to call the Legislature into a special session. In 2017, the legislature was in session from January 3 through June 30.
  • An annual motor vehicle excise tax in Rhode Island fluctuates among municipalities in the state. It is highest in Providence—Rhode Island’s biggest city—where residents pay $60 for every $1000 that the vehicle is worth. Revenue generated from car taxes provides roughly $220 million per year for Rhode Island municipalities. That money accounts for as much as 14 percent of a town’s revenue, on the high end, and as low as 2.9 percent on the low end. Earlier in 2017, Raimondo proposed an alternative to the full repeal supported by Mattiello. She advocated for a 30 percent cut to the tax.[104]
  • The budget standoff left several other pieces of legislation in limbo, including a proposal granting paid sick leave for private sector employees and a proposal to limit access to firearms for individuals with histories of domestic abuse. Groups such as the National Rifle Association campaigned against the latter measure.[105]
  • See also: Rhode Island General Assembly and Governor of Rhode Island

Wisconsin[edit]

  • Trifecta status as of July 2017: Republican Trifecta
  • Lawmakers in Wisconsin failed to pass a state budget by the start of the state’s new fiscal year on July 1.[106] The missed deadline, however, was not out of the ordinary in Wisconsin. Between 1997 and 2017, the state passed only three budgets by July 1.[107] In Wisconsin, spending levels from the previous two-year budget stay in effect until a new budget passes, allowing state agencies to continue operating and sparing citizens from most effects of a government shutdown. If the budget were to continue to be ironed out months down the road, some projects could be delayed and local school districts would be in the position of setting budgets without knowing how much state funding will be available.[106]
  • The Joint Finance Committee of the Wisconsin State Legislature passed a motion on September 5 that led to budget negotiations moving forward in the legislature. The plan, which was passed by the committee on a 12-4 party-line vote, put $400 million towards transportation. Governor Scott Walker’s (R) budget proposal had $500 million going into transportation. The committee's plan also included a state registration fee of $100 for electric vehicles and $75 for hybrid vehicles. On September 6, the full $76 billion budget passed in the finance committee. The state Assembly approved the budget in a 57-39 vote on September 12, and the state Senate approved it on September 15. Until the afternoon of September 15 it was unclear if Republicans would have the 17 votes required to pass the bill. However, after a three-hour recess, senators returned to the floor with Republicans suggesting that they have the votes needed for the votes to pass.[108] The bill passed the Senate on a 19-14 vote.[109] Governor Walker made 99 vetoes to the bill before signing it on September 21, exercising Wisconsin's line-item veto power that extends to individual words, exceeding the power of most state governors.[110]
  • Throughout Wisconsin's 2017 legislative session, Republicans in the state Senate and state Assembly disagreed on how to fund road projects, how to increase funding for K-12 schools, and how to cut taxes. Assembly Speaker Robin Vos (R) said on Wisconsin Public Radio, "If you're not willing to raise the revenues, it's not conservative to borrow and spend, which is unfortunately what it seems like our Senate colleagues are talking about."[111]
  • On September 14, members of the state Assembly voted in 64-31 favor of a $3 billion tax incentive package aimed at bringing a Taiwanese LCD flat screen factory to southeast Wisconsin.[112] That vote sent the bill to the desk of Gov. Walker, who signed the bill not long after.[113]
  • Hon Hai Precision Industry Co Ltd., which trades as Foxconn Technology Group, looked to build a $10 billion campus in Southeast Wisconsin. Foxconn announced in October 2017 that the factory would be built in Mount Pleasant in Racine County.[114] The new factory was projected to bring up to 13,000 jobs to the area by 2021. Salaries would start at $41,600 a year and would average $53,900. The deal would allow Foxconn to receive up to $1.35 billion after a full investment has been made into the plant and equipment. Another $1.5 billion would be given to Foxconn after the company begins to employ workers.[115] A report by the Legislative Fiscal Bureau found that it could take 25 years for the state to break even financially on the deal.[116][117] Foxconn is also looking at Dane County for a second campus.

Washington[edit]

  • Trifecta status as of July 2017: Divided Government
  • Washington Gov. Jay Inslee (D) signed into law a two-year $43.7 billion operating budget at 11:00 pm on June 30, allowing the state to enter into the 2018 fiscal year on July 1 with a spending plan in place. Without it, Washington would have experienced its first-ever partial government shutdown.[118] Budget negotiations in Washington throughout 2017 centered largely on the issue of funding education. In 2012, the Washington Supreme Court ruled that the state was underfunding education and required the legislature to ensure full funding for K-12 education by 2018. Inslee and Democratic lawmakers in the state proposed tax increases to bolster funding for education, while Republican lawmakers argued that the state could meet most of the requirements of the 2012 state Supreme Court ruling without significant tax increases throughout the state as a whole. The final budget agreement provided an additional $7.3 billion for education funding in the state between 2018 and 2021 and included a Republican-backed plan to increase property taxes in areas such as King County, where the city of Seattle is located. An analysis of the plan showed that residents in 185 school districts would see property taxes decreases over the next four years, while 100 districts would property taxes increase. The House supported the bill 70-23, while the Senate supported it 39-10.[119][120]

State government trifectas[edit]

See also: State government trifectas

The following maps display current state government trifectas as well as trifectas following the 2016 elections as well as trifectas leading up to the 2010, 2012, 2014, and 2016 elections. Use the buttons on the left to select a map.

Current state government trifectas

State government trifectas, post-2024 elections[edit]

State government trifectas, pre-2024 elections[edit]

State government trifectas, post-2022 elections[edit]

State government trifectas, pre-2022 elections[edit]

State government trifectas, post-2020 elections[edit]

State government trifectas, pre-2020 elections[edit]

State government trifectas, post-2018 elections[edit]

State government trifectas, pre-2018 elections[edit]

State government trifectas, post-2016 elections[edit]

State government trifectas, pre-2016 elections[edit]

State government trifectas, pre-2014[edit]

State government trifectas, pre-2012[edit]

State government trifectas, pre-2010[edit]

Learn more about Ballotpedia's analyses of trifectas and state governments

See also[edit]

Footnotes[edit]

  1. 1.0 1.1 Wall Street Journal, "Connecticut Budget Deal Unlikely Before July 18, Governor Says," July 5, 2017
  2. 2.0 2.1 2.2 The Connecticut Mirror, "House, Senate Democrats unable to agree on provisional budget," June 27, 2017
  3. The Hartford Courant, "Budget Stalemate Causes Pain For Cities And Towns," July 30, 2017
  4. The Hartford Courant, Malloy's New State Education Aid Plan Cuts Or Eliminates Funding To 139 Municipalities," August 18, 2017
  5. The Connecticut Mirror, "State school aid: How would your town fare under Malloy’s plan?" August 18, 2017
  6. CT News Junkie, "General Assembly Fails To Convene To Pass 90-Day Budget," June 29, 2017
  7. The Hartford Courant, "Malloy Says Budget Could Be Delayed Until Fall," July 26, 2017
  8. The Hartford Courant, "Malloy Urges House Leaders To Approve Temporary Budget Plan As Deadline Looms," June 28, 2017
  9. The Hartford Courant, "As House Republicans Present Budget Plans, Democrats Hopeful Of Deal By Late July," July 11, 2017
  10. CT News Junkie, "Up Next? A $3.5 Billion Budget Deficit," August 1, 2017
  11. 11.0 11.1 The Hartford Courant, "With Deadline Looming, Malloy Signs Portions of the Budget Bill," October 31, 2017
  12. The Connecticut Mirror, "House gives final approval to CT budget fix," November 15, 2017
  13. The Hartford Courant, "Connecticut State Senate Approves Changes To State Budget," November 14, 2017
  14. 14.0 14.1 The Hartford Courant, "Senate Overwhelmingly Backs Bipartisan State Budget, House Votes Later Thursday," October 26, 2017
  15. The Hartford Courant, "House Approves Bipartisan Budget With Veto-Proof Majority," October 26, 2017
  16. The Hartford Courant, "Gov. Malloy Says Newly-Adopted State Budget Contains $1 Billion Error," October 26, 2017
  17. The Hartford Courant, "Connecticut Legislators Announce Another Budget Deal That General Assembly May Vote on Wednesday," October 24, 2017
  18. The Hartford Courant, "Republicans, Democrats Agree On Compromise Budget, But Malloy Hasn't Seen It," October 18, 2017
  19. CT News Junkie, "Wall Street Sends Connecticut A Warning," October 13, 2017
  20. CT News Junkie, "Wall Street Issues Connecticut Another Warning," October 16, 2017
  21. The Hartford Courant, "Moody's: State Budget Crisis Threatens Financial Health Of Dozens Of Connecticut Municipalities," October 16, 2017
  22. U.S. News and World Report, "House Chooses Not to Bring Budget Veto Override to a Vote," October 3, 2017
  23. NBC Connecticut, "Schools Bracing for October 1 After Budget Vetoed," September 29, 2017
  24. Reuters, "Connecticut's deep spending cuts in effect as new deadline passes," October 1, 2017
  25. Fox Business, "Connecticut's Biggest Teachers Union Sues State Over Spending Cuts," October 11, 2017
  26. Education Law Center, "Connecticut," accessed October 12, 2017
  27. The Connecticut Mirror, "Malloy vetoes budget, seeks ‘honest dialogue’," September 28, 2017
  28. The Hartford Courant, "Both House and Senate Approve GOP Budget; Malloy Vows Veto," September 16, 2017
  29. The Hartford Courant, "Senate Votes In Favor Of Republican Budget Proposal, Bill Sent To House," September 15, 2017
  30. CT News Junkie, "With 5 More Democrat Votes, House Forwards GOP Budget to Malloy; Veto Expected," September 16, 2017
  31. The Hartford Courant, "Connecticut At A Turning Point As Republicans Gain Upper Hand In Budget Crisis," September 17, 2017
  32. The Hartford Courant, "Wyman Casts Tiebreaking Vote To Approve Union Concessions Deal," July 31, 2017
  33. The Hartford Courant, "House Narrowly Approves State Worker Labor Concessions," July 24, 2017
  34. 34.0 34.1 The Hartford Courant, "Employee Unions Endorse Concession Deal by Huge Margin, 83 to 17 Percent," July 18, 2017
  35. CT News Junkie, "Unions Ratify Labor Savings, General Assembly Up Next," July 18, 2017
  36. CT News Junkie, "Wage Contracts Released To Republicans," July 19, 2017
  37. CT News Junkie, "Malloy Says Lawmakers Need To ‘Check Their Egos At the Door’," July 17, 2017
  38. CT News Junkie, "Down To The Wire, Republican Leader’s Request For Contracts Is Ignored," July 18, 2017
  39. The Hartford Courant "Connecticut 4th Most Unionized State," January 27, 2017
  40. Delaware State News, "It’s official: Carney signs $4.11 billion budget," July 3, 2017
  41. Delaware State News, "Legislature compromises, passes budget," July 3, 2017
  42. Reuters, "S&P cuts Illinois' credit rating to one notch above junk," June 1, 2017
  43. NBC Chicago, "What Happens If Illinois Lawmakers Don't Pass a Budget?" June 28, 2017
  44. U.S. News and World Report, "Illinois Senate Democrats Vote for $5.4 Billion Tax Increase," May 23, 2017
  45. Chicago Tribune, "Illinois Senate votes to override Rauner veto of income tax hike, budget," July 4, 2017
  46. Milwaukee Journal Sentinel, "Wisconsin's state budget takes $51 million hit — thanks to Illinois," July 11, 2017
  47. Politico, "Illinois lawmakers face budget rage," July 5, 2017
  48. Chicago Tribune, "Madigan sends Rauner message on tax hike vote as talks break down at Capitol," July 1, 2017
  49. 49.0 49.1 The Chicago Sun-Times, "Illinois has state budget, but no school funding plan," July 16, 2017
  50. NPR Illinois, "Education Desk: Evidence-Based School Funding Model Explained," September 26, 2016
  51. WTTW, "Education Funding in Illinois: How the Evidence-Based Model Works," September 21, 2016
  52. Chicago Tribune, "Rauner-CPS feud could hold up school money for rest of state," July 13, 2017
  53. U.S. News and World Report, "Rauner Aide: Democrats' School Funding Plan a CPS 'Bailout'," May 17, 2017
  54. U.S. News and World Report, "The Latest: Gov. Rauner Calls School-Funding Special Session," July 24, 2017
  55. Chicago Tribune, "Next move is Rauner's after Senate sends him school funding bill," July 31, 2017
  56. Chicago Tribune, "Rauner vetoes education funding plan, Emanuel accuses him of 'fuzzy math'," August 1, 2017
  57. Chicago Tribune, "Madigan: Attempt to override Rauner's education veto set for next week," August 16, 2017
  58. Chicago Tribune, "Senate overrides Rauner school funding veto, but House hurdle remains," August 13, 2017
  59. The Chicago Sun-Times, "Speaker Madigan calls legislators to work — on Governor’s Day," August 9, 2017
  60. wglt.org, "Illinois House To Vote Next Week On School Funding Override," August 16, 2017
  61. Chicago Tribune, "Madigan calls off Wednesday session in Springfield; no override vote of Rauner for now," August 23, 2017
  62. Politico, "SCHOOL funding WINNERS and LOSERS — RAUNER staffing TURMOIL — Saving ABE in CHICAGO," August 25, 2017
  63. capitolfax.com, "Education funding reform bill gets just 46 votes," August 28, 2017
  64. capitolfax.com, "On second try, education funding reform passes with 73 votes," August 28, 2017
  65. capitolfax.com, "React rolls in to passage of education funding reform," August 29, 2017
  66. NBC Chicago, "Rauner Signs Historic Education Funding Reform Bill," August 31, 2017
  67. NPR, "Why America's Schools Have A Money Problem," April 18, 2016
  68. pressherald.com, "New state budget sends more money to public schools in Maine," July 5, 2017
  69. pressherald.com, "State workers bracing for worst as threat of a shutdown looms," June 22, 2017
  70. pressherald.com, "Legislature votes to extend session to try to resolve budget impasse," June 21, 2017
  71. Boston.com, "As new fiscal year arrives, Massachusetts lawmakers grapple with shortfall," July 1, 2017
  72. Telegram, "Lawmakers pass $40.2B state budget," July 7, 2017
  73. 73.0 73.1 Boston.com, "Massachusetts lawmakers approve compromise $40.2 billion state budget," July 7, 2017
  74. Mass.gov, "Governor Baker Signs Fiscal Year 2018 Budget," July 17, 2017
  75. Boston Globe, "Baker vetoes $320m in budget, pushes MassHealth changes," July 17, 2017
  76. U.S. News, "Gov. Baker to Sign Health Care Fee, Wait on Medicaid Changes," August 2, 2017
  77. Lowell Sun, "House rebuffs Baker, restores $275M in cuts gov made," September 14, 2017
  78. Sentinel & Enterprise, "Another day, another $9 million voted to be restored by House to state budget," September 28, 2017
  79. 79.0 79.1 Telegram, "Mass. House steamrolls through veto overrides," October 4, 2017
  80. MassLive, "Senate chips away at Baker budget vetoes restoring $25 million," September 28, 2017
  81. Sentinel and Enterprise, "Senate overrides cuts to health programs," October 23, 2017
  82. Telegram, "Beacon Hill Roll Call," November 4, 2017
  83. Greenfield Recorder, "Beacon Hill Roll Call, Nov. 13 to 17, 2017," November 21, 2017
  84. NY Times, "Standoff Ends in Budget Deal for New Jersey," July 3, 2017
  85. NBC New York, "Gov. Christie Orders New Jersey Government Shutdown Amid Budget Impasse," July 1, 2017
  86. 86.0 86.1 Politico, "Christie signs N.J. budget, ending 3-day government shutdown," July 3, 2017
  87. The Inquirer, "S&P threatens to cut Pa. credit rating," July 6, 2017
  88. The Morning Call, "Pennsylvania Gov. Tom Wolf to let budget become law," July 11, 201
  89. U.S. News, "Pennsylvania Budget Takes Effect Amid Fight Over Funding It," July 10, 2017
  90. U.S. News, "Pennsylvania Senate Approves Higher Taxes to Balance Budget," July 27, 2017
  91. NBC 10, "Budget Bills Are Ugly But Pennsylvania Gov. Tom Wolf Has Little Choice But to Sign," October 28, 2017
  92. The Inquirer Daily News, "Wolf signs bills to balance Pa. budget with gambling and borrowing, hints of veto of education bill," October 30, 2017
  93. The Morning Call, "Pennsylvania's budget still not finished," July 5, 2017
  94. The Inquirer, "PA. budget talks drag on," July 5, 2017
  95. Lehigh Valley, "House, Senate send Pennsylvania budget to Gov. Wolf," June 30, 2017
  96. The Westerly Sun, "Guest commentary: Senate budget will protect Rhode Island taxpayers," July 6, 2017
  97. 97.0 97.1 Note: This text is quoted verbatim from the original source. Any inconsistencies are attributable to the original source.
  98. Providence Journal, "My Turn: Nicholas A. Mattiello: Senate’s last-minute shenanigans hurt R.I.," July 8, 2017
  99. Rhode Island Public Radio, "RI Budget Impasse Could End With Senate Vote As Soon As Next Week," July 19, 2017
  100. WPRI, "Governor signs RI budget after month-long standoff," August 3, 2017
  101. Rhode Island Public Radio, "Analysis: Statehouse Frittata Leaves RI State Budget In Limbo," July 5, 2017
  102. WPRI, "RI House approves $9.2B new state budget," June 22, 2017
  103. U.S. News, "RI Governor to Lawmakers: 'Do Your Job' and Pass Budget," July 5, 2017
  104. U.S. News, "Rhode Island Struggles to Eliminate Hated Car Tax," April 2, 2017
  105. Providence Journal, "GOP, NRA gain unexpected ground when R.I. lawmakers end session in standoff," July 1, 2017
  106. 106.0 106.1 Wisconsin State Journal, "It's July and the state still doesn't have a budget. What happens?" July 2, 2017
  107. Milwaukee Journal Sentinel, "Wisconsin lawmakers will miss budget deadline as talks slow," June 24, 2017
  108. WBAY, "The Latest: Committee approves $76 billion Wisconsin Budget," September 6, 2017
  109. Wisconsin Public Radio, "State Legislature Approves Delayed State Budget," September 15, 2017
  110. Reuters, "Wisconsin governor signs overdue budget into law," September 21, 2017
  111. Wisconsin Public Radio, "Wisconsin Misses Budget Deadline As Squabbling Continues At The Capitol," July 3, 2017
  112. Journal Sentinel, "Wisconsin Assembly sends $3 billion Foxconn incentive package to Scott Walker," September 14, 2017
  113. The Washington Post, "Scott Walker just approved $3 billion deal for a new Foxconn factory in Wisconsin," September 18, 2017
  114. Chicago Tribune, "Foxconn to locate Wisconsin plant in Mount Pleasant," October 4, 2017
  115. Journal Sentinel, "How would the Wisconsin Foxconn deal work? Here are some answers," August 16, 2017
  116. Legislative Fiscal Bureau, "August 2017 Special Session Assembly Bill 1: Foxconn/Fiserv Legislation," August 8, 2017(Archived)
  117. Wisconsin State Journal, "State would recoup Foxconn investment in 25 years, estimate shows," August 9, 2017
  118. The Seattle Times, "Gov. Inslee signs $43.7 billion state budget; 11th-hour deal averts shutdown," June 30, 2017
  119. King5, "Property tax increase for some, lower for others under state budget," July 1, 2017
  120. King5, "Gov. Inslee signs $43.7 billion state budget," June 30, 2017



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