OFM Director Victor Moore just told the press that they will have to go back out to state agencies to find additional reductions for this biennium. That’s because with the projected loss of $500 million in 2007-09, the state is now likely in the “red” in the current fiscal year. This could mean more reductions on top of the $10 million the UW has been asked to find in FY 2009.
Moore also confirmed that the projected budget deficit has now tipped past the $5 billion mark.
The capitol press corps is asking whether the Governor and Legislature can really balance the state budget without increased revenues and so far, the collective response is that they are going to stick with an all reduction solution.
Here’s the official statement from the Governor and her budget office on this morning’s revenue forecast.