The second Senate supplemental, like the governor's initial budget, spends the maximum allowed under Initiative 601. The minor difference between the two reflects different estimates of the limit, with the Senate estimate being more accurate. One of the stories this session is the savings available because school enrollments and social service caseloads are lower than expected when the 1997-1999 budget was adopted last biennium. Budget writers forecast expenditure requirements based on demand for education and various social service programs. When actual demand is below the forecast, the state does not need to spend the money appropriated.
Similar savings accrue to the state as a result of lower caseloads in human service programs.
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