Yesterday the House released a revised biennial budget and this morning held a public hearing on the new proposal.

The proposal makes a handful of changes based on the recent revenue forecast as well as an extension of the higher federal match for the Children’s Health Insurance Program combined with smaller updates and corrections. These changes are made to the proposal initially released by the House in April.

The latest House proposal retains only one of the major new revenue proposals put forth by the chamber – the capital gains tax.  In addition the latest proposal includes $34 million in savings in state employee health benefits, assuming a lower rate increase than previously calculated; $220 million less for K-12 public schools of which the majority comes from not increasing funding for K-12 health benefits; and $11 million less for natural resources of which the majority comes from not increasing the disaster contingency appropriations.

The proposal increases appropriations by $17 million for mental health, increases the TANF grant by 9% instead of providing increased funding for specific services, and an additional $50 million is assumed above the original proposal for low income health care costs which are covered by anticipated increases in marijuana related revenue.

As it relates to higher education the new proposal provides $32 million less for higher education, nearly all of which comes from the reduced costs of health benefits, and a reduction to the Opportunity Scholarship from $60 million in the original proposal to $30 million.

The House is scheduled to move the new proposal out of committee tomorrow, June 3 at 1:00 pm.