The state has announced a list of budget "holdbacks" and targeted savings to balance the fiscal 2017 budget starting on July 1.
"Holdbacks" are defined by the Office of Policy and Management Secretary Ben Barnes as "generic savings included to the adopted budget which result in funds being withheld from agencies so that they cannot be expended."
The allocation of holdbacks totals approximately $130 million, which is about 0.7 percent of the general fund spending for the new fiscal year.
The budgeted unallocated lapse authority allows the Secretary to withhold appropriations in order to help ensure savings targets are hit and a total of $52 million from all branches will occur.
With timely and realistic plans to achieve these savings that were included in revised budget, we are taking this proactive step to adjust to our new economic reality before the fiscal year begins,” Barnes stated. “We’re going to continue to ensure balance in our budget and will continue to take the steps necessary under the authority granted to us.”
The total number of holdbacks will be about $36 million in personal services, $7.6 million in other expenses, about $3 million in municipal aid, $17.6 million in human services, $31 million in education (including higher education), $6.5 million in grants, approximately $20 million in criminal justice, and $8.2 million in other categories.
