Lawmakers quickly approved budget bills Thursday after reducing child care subsidies and removing scholarships for students attending private or religious schools.
These issues had been major sticking points for several senators, who twice stalled the budget in attempts to preserve the scholarships. After hours of earlier debate, lawmakers advanced the budget with a 33-0 vote Thursday morning without further discussion.
Both the scholarships and maintaining current child care subsidies would have cost the state more than $3 million each. By moving the budget forward, lawmakers reduced a projected deficit from $471.5 million at the start of the session to $38 million. Upcoming revenue measures could potentially close that gap by about $37 million through increased income or additional cuts.
The eligibility threshold for child care subsidies dropped from 185% of the federal poverty line to 130%, effectively ending a pandemic-era expansion that had provided about $20,000 more for a family of four.
“Child care subsidies are not removed at all, they’re returning to what they have been in statute,” said Sen. Rob Clements, chair of the appropriations committee. “Just wanted to make that clear.”
Clements said that after reviewing vote counts, it became clear that neither the scholarships nor the higher subsidy levels could pass. Including one or both provisions would have triggered opposition strong enough to defeat the budget. He added that this was not a compromise but the only viable path to pass a balanced budget, which is the legislature’s constitutional requirement.
Sen. Danielle Conrad later argued that the budget favors wealthy individuals while placing a heavier burden on working families. She also warned that the next biennial budget still faces a nearly $780 million deficit.
“We’re staring down the barrel of a billion-dollar structural budget deficit that we’re going to have to contend with in just a few short months,” Conrad said. “And something has got to give.”
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