• March 1 2010

Governor's 2011 Budget: The Worst is Yet to Come

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The Governor's reliance on more than $2 billion of one-time funds in his $31.7 billion fiscal 2011 budget will require major budget cuts in 2012. According to the Foundation's analysis, even if revenues grow by $1 billion in 2012, the state would still confront a $2.5 billion shortfall with virtually no state and federal reserves to help close the gap. In addition, should the voters this November approve a ballot initiative to reduce the state's sales tax from 6.25 to 3 percent, the state will face a $5 billion structural gap in fiscal 2012, as well as an immediate $1 billion revenue shortfall in fiscal 2011.