Walker budget is no hit

The ink is not yet dry on Gov. Olene Walker's budget for next year, and already GOP lawmakers are saying "no way" to key parts of the governor's plan to boost funding for education.

"In all honesty, we cannot meet her budget expectations the way it is structured now," said House Majority Leader Greg Curtis, R-Sandy.

On Tuesday, the House GOP caucus formally voted to oppose taking away water development money, a move Walker wants in order to shift $14 million to education. And the caucus voted "no" on Walker's proposal to take the $65 million now going into the Centennial Highway Fund every year and shift it to the general fund to be used for education.

Lawmakers did not vote on a half-dozen other Walker proposals to raise additional cash or shift money around — all part of a plan to increase spending by about $273 million in the 2004-05 fiscal year, most of it in public and higher education. But about half that amount, roughly $135 million, "will be a tough sell to this body," Curtis said.

And by the time basic state needs are met, lawmakers will be hard-pressed to fund anything in any area of state government above current levels.

On Wednesday, the Executive Appropriations Committee ordered all appropriations committees to start the 2005 budgeting process from the assumption that budgets will be the same as last year. And Executive Appropriations warned there will be only $38.1 million above last year's budget to divvy up among the subcommittees.

All that could change by the end of February when new tax revenue projections will be unveiled, and improvements in the economy could prompt fiscal analysts to revise their estimates upwards.

But don't count on it, Curtis said. The economy is improving, but he said tax collections typically lag way behind economic recovery. In other words, it will be in the 2006 budget year when the effects of the current recovery will be seen.

Walker met with the GOP House Caucus for about 30 minutes Tuesday, making her budget pitch and answering questions.

There was a lot of support for her reading initiative, which will cost about $30 million. Curtis said it probably would be the first new program funded by the 2004 Legislature after all the basic obligations are met — things like making the retirement system sound and funding growth in education.