Budget deficit grows to $2.8 billion

The state's budget outlook worsened today with news that the revenue forecast is being downgraded by $118 million. Combined with a $96 million increase in caseloads, the state's new budget deficit is projected to be $2.8 billion. Despite a forecasted 12% increase in revenue for the next budget (2011-13), a multi-billion dollar deficit is projected for the next biennium. This is illustrated by the state's 4-year budget outlook (yet to be updated). Consumer confidence is the key to economic recovery. Should consumer confidence fail to improve the state is at risk of a double dip recession. According to the forecast . . . READ MORE