Tuesday, January 05, 2010

State Budget Deficits as Far as the Eye Can See

This chart from the last fiscal update says it all. The state is scheduled to run annual structural budget deficits of more than $2 billion into the term of the next Governor. The deficits have been masked by federal stimulus money, but that will run out in Fiscal Year 2011.

So far, 59% of the budget cuts have been one-time actions as opposed to ongoing reductions.

If the Governor and the General Assembly have a plan to deal with this other than simply waiting until after the election, we have yet to see it.