June revenue forecast explained

Remember all the "fun" last week as reporters and budget junkies tried to make heads or tails out of the June revenue forecast? The revenue forecast showed a negative $12 million difference between the March and June forecasts for the two budgets yet the impact on the ending fund balance for 2011-13 showed a reduction of $575 million. So how exactly does that math work? Quite well when you account for the fact the Legislature didn't assume any future revenue loss as a result of booking the tax amnesty funds in its budget balance sheet and then making adjustments for economic and non-economic activity since the March revenue forecast . . . READ MORE