COLA mentioned in front page story of Democrat-Gazette. Chief Fiscal Officer, Richard Weiss says “state’s revenue forecast for fiscal 2014 envisions enough money to fully fund categories A and B (COLA).”
How does the Revenue Stabilization Process work?
The Revenue Stabilization Act process, enacted in 1945, assists with prioritizing state revenue spending. The Act was put into place to ensure that state programs and agencies are not over-funded or under-funded. Revenue spending is prioritized into categories A, B and C.
Category A includes education, correction, public health and human services
Category B includes cost-of-living adjustments for state employees and agency programs as well as expansion of human services programs
Category C includes new programs requested by agencies and the legislature
Funding goes to category A, B and then C. If cuts are made then those cuts are from category C, B and then A. The two percent cost of living adjustment will be effective July 1, 2013.