Last week we summarized the potential impacts of the Governor’s proposed state budget on cities. This week, the House Appropriations and Senate Ways & Means committees considered the proposed budget and conducted public hearings. At both hearings, AWC testified that the proposal is a mixed bag when it comes to city priorities.

On the positive side, the proposal fully funds all shared revenues with cities and the Municipal Research and Services Center. It also provides additional funding for housing and homeless programs and eliminates the sunset on the fees that fund homelessness efforts.

On the negative side, the proposal permanently sweeps the remaining funds for the Public Works Trust Fund.

The proposal also funds some, but not all, of the additional classes needed at the Basic Law Enforcement Academy.

Now that the Governor’s proposal has been heard, we expect the focus to shift to policy bills until after the next state revenue forecast in March. Shortly after that forecast, the Senate Republicans are expected to release their proposal to fund state government and basic education for the next two years.