Governor signs seven bills passed during special session

Most relate to the need to cut $275 million more out of the current two-year budget.

The bills, including one cutting school textbook money by $48 million, were passed by lawmakers on Friday.

Gibbons, in remarks accompanying the announcement of the bill signings, said he would have preferred other options to cutting the textbook money for this fiscal year in half, although the money will be restored if tax revenues come in ahead of projections.

"I believe it would be more prudent to have targeted reductions to operating budgets of state agencies and protect these valuable resources," he said. "Still, I commend the Legislature for their willingness to make these difficult choices in these tough economic times."

Gibbons said also he would have liked lawmakers to move forward with a plan advanced by Lt. Gov. Brian Krolicki to use the state’s tobacco settlement money to back bonds that could help the state weather the current economic downturn.

"By simply providing the permissive language to sell bonds based on this money, the Legislature would allow further consideration of this concept moving forward, should it be deemed necessary," he said. "I believe this option must be kept in mind if our general fund revenue continues to decline."

But Gibbons said the legislative plan was similar to his proposals, and, "it is in this spirit of compromise that I am signing these bills to balance the state budget for the remainder of the current biennium."

He also warned that the cutting of the current budget, now close to $1.2 billion, may not be over if state tax revenues don’t recover.

In addition to the textbook cut, lawmakers approved a further 3 percent cut in state and education spending, although the cuts won’t be across the board. That will save another $106 million. Lawmakers also took money from a variety of reserve accounts to help balance the budget.

Lawmakers are not expected back in the capital until the regular session begins in February.