State agencies asked for holdback updates

In a memo sent to all state agencies today, there’s clear warning that an additional 1.5 percent of the state budget that’s being held in reserve after September’s 1 percent holdback may well be on the chopping block very soon. “I am asking each of you to review the 1.5% holdback plan you submitted in September and to notify DFM of any modifications you believe to be necessary no later than noon on Friday, November 14,” state Division of Financial Management Administrator Wayne Hammon wrote to all state agency heads. The September holdback trimmed $27.3 million out of the state budget mid-year. The additional 1.5 percent adds up to another $40.8 million.