The Senate Ways and Means committee advanced the $19.77 billion state budget, filling federal funding holes by eliminating state job vacancies and frequently unused funds.
It would preserve the income tax cut that will continue to go into effect over the next five years, costing the state about $3 billion dollars in revenue by 2031.
Senate Ways and Means Chair Donovan Dela Cruz listed federal funding cuts to SNAP and Medicaid, cost increases due to the war in Iran and flood recovery as reasons to keep the income tax cuts in place.
“ The budget is part of a larger package of tax system reform, long-term investments and cost-saving measures to increase the resilience of the state, while also delivering on meaningful tax relief to our working families,” he said.
“The budget reflects a multi-pronged approach that captures underutilized funds to prioritize resources for essential public services, including funding for programs in critical areas as identified in the Senate majority package,” Dela Cruz said.
Those critical areas include workforce housing, affordability and economic development.
Another change includes putting about $129 million generated from the new green fee on hotels and cruises for climate resilience projects into the Land and Development special fund. The money will then be distributed to different departments for specific projects.
The measure will next be voted on by the full Senate.
