Squeaking through?
Tuesday’s state Revenue Estimating Conference ended up predicting a small (1%) reduction in state general revenues from the March estimate that was the basis for the state’s budget this year (see executive summary for more). That will not require a special session to cut the current year’s budget, at least for now.
The forecast for 2010-11 is also less than the 2010-11 forecast in the March estimate, but the predicted general revenues for 2010-11 is still more than 6% higher than in the current fiscal year. The continuation of stimulus funding for education means that we’ll probably see something close to a flat budget for next year, plus hopefully a minor increase depending on politics. The closer we get to the next legislative session without additional free-fall in the state’s economy, the better the state’s general budget outlook is. There will still be a fight for revenues in the legislature, but the odds are looking better that we’re not going to have additional horrid cuts.
