'Are You in Denial?’: Senators Confront Finance Officials Over Government Cash Shortages

The stability of the government’s finances have been called into question by members of the 36th Legislature, following a status update by the governor’s financial team before the Committee on Budget, Appropriations, and Finance on Tuesday.

All fifteen senators listened as Finance Commissioner Kevin McCurdy provided the financial update, which included a report of $38.9 million in available cash on hand as of February 7. The general fund contains $26.4 million of that sum. “This cash balance benefited in part from $40 million of transfers in November and December, from the line of $50 million credit into the general fund,” Mr. McCurdy explained. “As of February 7th, $11 million of the $40 million had been repaid with the remaining $29 million forecasted to be repaid by May 2025,” the finance commissioner shared. The $29 million in question was used to “support GVI’s continued operations.”

The amount of revenue collected since the start of the fiscal year on October 1, 2024, totals $298.5 million, of which $247.2 million came directly into the general fund. According to Mr. McCurdy, utility payments under the single-payer fund are being well-managed, and work continues to ensure “timely submission of [federal] drawdown requests.” Meanwhile, the Bureau of Internal Revenue has “fully processed 15,395 units of tax returns totaling $39.9 million in refunds, but these can only be paid “once the funding is permitted.” Accounts payable as of February 7th stand at $66.1 million.

Asked by committee chair to describe the GVI’s financial health in a single word, Mr. McCurdy suggested “stable.” That is a characterization with which Senator Kurt Vialet deeply disagreed.