HB 4488 – Budget gimmick/loophole extension

HB 4488 is a technical bill that pretends to clean up the state’s finances but instead makes it easier for lawmakers to rely on accounting tricks to pass bigger budgets. It extends the use of a loophole that lets the state count money from dedicated funds—meant for specific purposes—as if it were free to spend elsewhere, inflating the revenue estimate without raising taxes or making actual cuts. They inflate the revenue side of the budget equation using fund balances that aren’t truly free to spend. It also claims to “abolish” new dedicated funds created this session, but most funds are exempted, making this part largely meaningless and just for show. The bill extends the expiration date of this certification loophole to 2027, ensuring that lawmakers can keep using these tricks next session. Instead of promoting real fiscal discipline, HB 4488 enables more spending while avoiding hard choices. It disguises revenue manipulation as reform. For these reasons, TFR opposes HB 4488.