The budget hole for current fiscal year continues to grow, according to a Fiscal Research report. Tax revenues are down 6.1% compared to revenue projections that were used while crafting the budget. The new numbers are down even more from the 5% below projections Fiscal Research reported in November.
A few weeks ago, legislative economists were projecting the current year gap to grow as large as $1.6 billion. In light of this most recent revenue report, and what will most likely be disappointing revenue due to a slow Christmas season, look for estimates to re-adjust to $2 billion or more come January.
State lawmakers can react to this news by cutting spending, raising taxes and fees, or some combination of the two. Stay tuned.