State programs and services to taxpayers are going to have to take a $300 million dollar hit in the next six months unless state officials can find some new money to pay the bills. Governor Holden found about the shortfall in state income after he was elected. He’s been briefed and has met with legislative leaders from both parties. Holden says the school foundation formula will the only money that won’t be preserved from cuts. He says several options are being considered, including use of money from the national tobacco lawsuit settlement. Until now, state leaders have talked of using it for long-term programs or tax refunds, not to plug budget shortfalls.
