Tough Budget Decision Remains … Despite Fiscal Improvements

State revenues have perked up as the current fiscal year comes to a close, but apparently they haven’t perked up enough to convince Governor Bob Holden to reverse a tough budget decision. Governor Holden announced during the signing of the next fiscal year budget that he expects to end this fiscal year with a general revenue cashbalance of about $300-Million – much more than anticipated a month ago, but not enough to convince Holden to release $230-Million in withholdings he announced in May. Holden says the state must keep at least $300-Million on hand at all times and he would prefer to have about $400-Million available. And, Holden denies that the ending cash balance gives credence to those who refused to touch the state Rainy Day Fund as he had requested. Holden announced the additional $230-Million in withholdings after theLegislature rejected his proposal.