Bad to worse — state revenues continuing to decline
Tuesday, March 24th, 2009 at 3:40 pm by Robert Lowry
Earlier today Governor Paterson, Assembly Speaker Silver, and Senate Majority Leader Smith announced that projected state revenues through the end of the 2009-10 state fiscal year are now expected to come in $2.2 billion lower than what the three parties estimated in their consensus revenue forecast one month ago.
In their February 24th consensus forecast, the Governor and legislative majorities agreed that the state would take in about $1 billion less than what was reflected in the Executive Budget proposed by Governor Paterson back in December.
After the Legislature approved a 2008-09 mid-year deficit reduction plan in February, it was estimated that the structural deficit in the state budget for 2009-10 was $13 billion.
Absent any revisions on the expenditure side, today’s news would mean that state leaders now must close a $16.2 billion deficit to enact a balanced budget.
The revenue fall-off is blamed on “worsening turmoil within the financial sector and broader economy.” The news release recites well-publicized evidence of the economy’s struggles, including rising unemployment rates and claims.
The news release concludes:
The Governor and Legislature will accommodate these new costs as part of a fiscally responsible Enacted Budget.
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