Representative McGuire, a member of the Finance Committee, told colleagues on Feb. 18 that a Legislative Budget Analyst (LBA) comparison of the governor’s budget and preliminary House Ways and Means revenue figures shows a biennial shortfall of about $732,948,000.

"For the biennium we are short $732,948,000," Representative McGuire said, summarizing the LBA comparison. He told members the governor’s proposal assumes several items that Ways and Means’ preliminary figures do not: a withdrawal of about $81,000,000 from the rainy day fund and an estimated $127,000,000 from licensed gaming (slot machine) revenue, both of which are not yet reflected in the Ways and Means figures.

McGuire and other members also identified major items not included in the governor’s budget that could affect the final balance: payments associated with the youth detention center (YDC), which committee members said total about $150,000,000 for the biennium, and a planned multi‑year payment schedule for a prison buildout that committee members described as roughly $40,000,000 per year for 10 years if fully implemented. McGuire said borrowing for the prison remains a possibility under discussion.

Members asked how proposed or pending revenue changes would affect the committee’s numbers. Representative Rung asked whether restoring the dividends-and‑interest tax on certain filers would materially improve revenues; McGuire said such measures would feed into Ways and Means’ revenue estimate if enacted and could change the numbers the Finance Committee must work within.

Committee members discussed process and timing: Ways and Means traditionally issues a formal revenue estimate — which the House uses as the binding figure — later in the week, and any new revenue measures (for example, slot machine authorization or changes to dividend-and-interest exemptions) would prompt Ways and Means to revise that estimate if adopted before the vote. Members emphasized there are "many moving parts" and said they have until March (the committee discussed the March budget timeline) to reconcile priorities.

Representative McGuire also described the relationship between the Finance Committee and the separate education funding panel. He said several members of Finance serve on the education committee and that education funding bills — including long-standing issues such as donor-town/sweep provisions in the school funding formula — will return to Finance for incorporation or revision as the budget process continues.

The committee concluded discussion with a reminder that staff will distribute the LBA comparison paperwork to members who did not yet receive it and that multiple division meetings are scheduled to reconcile capital and operating priorities.

No formal budget decisions were adopted at the meeting; members framed the session as an information and planning step in an ongoing budget process.