Part of the bill would raise $96 million in fees. Another key component of the budget is the elimination of a portion of the property taxes that go to the state, which saves property owners money annually. The budget also eliminates all state income taxes on retirement income for residents age 65 and over. Combined, the tax breaks would cost the state $387 million over the five years.
But on Wednesday, Attorney General Thurbert Baker said Republicans in the House and Senate apparently failed to follow state law in approving the $387 million tax break. In a letter to House Minority Leader DuBose Porter (D-Dublin), Baker said Republican leadership “has not strictly adhered to the procedures imposed on itself by statute,” but he remained unsure as to what the courts could do about it.