There has been a lot of talk by the Democrats that there is a ‘$900 million budget surplus’. While this is technically true, it does not mean there is $900 million to spend on ongoing general fund operations in FY 2012. The following chart breaks down the $900 million and explains why it cannot be used to support ongoing expenditures. In fact, the use of one-time money in FY 2010 and FY 2011 is the main reason why the FY 2012 budget is such a mess. The state simply cannot continue to spend more than it takes in.
Click below for a visual explanation of the surplus:
Explaining the $900 Million Surplus