The 57th Legislature ended its final session on May 22, recessing until sine die becomes official at 5 p.m. May 29.
This was an extraordinary session in many ways. The COVID-19 pandemic turned what should have been a great budget year into a deficit nearly overnight.
We started the year thinking we would have slightly more to appropriate for Fiscal Year 2021 than we had for FY20. After the pandemic shut down many businesses and consumer spending slowed to a crawl, combined with a global trade war slashing the price of oil and gas, we were told to expect $1.4 billion, or 17%, less to appropriate.
We used every measure available to us — including using some of the state’s reserve funds, cutting some onetime expenses, allowing bonds for roads projects and conservation dams, and redirecting some off-the-top apportionments to education — the area of greatest need.
This allowed us to keep the cuts to about 4% for most state agencies and 2.5% for public education. The final $7.7 billion budget for FY21 is 3% less than FY20, and we still have available reserves and other funding to help us in FY22 if it is needed.
The process of crafting the budget for FY22 begins now.
This year, we were finally able to get a cost-of-living adjustment for state retirees across the finish line. The House has passed a COLA for the past two years. The Senate this year finally approved the legislation, and the governor signed it into law.
Retirees in all the state’s pension plans, including teachers, firefighters, police and other law enforcement, and judges and justices, will receive a COLA depending on their years of service.
Those receiving retirement benefits for five years or longer will get a 4% COLA; those receiving benefits for two years but not yet five will get a 2% COLA. It’s been 12 years since retirees received this raise in benefits, and it is nice to be able to finally deliver it. It will help with rising health care premiums and other living expenses.