Budget Situation Worse Than Previously Thought

Governor Holden has offered a revised look at the state’s current budget situation. He says times are still tough and not about to improve any time soon. The Governor says the state is between $200-Million and $250-Million short for the current fiscal year. To deal with it, he proposes additional withholdings from state agency and equipment budgets, transfers from the state facilities management reserve fund, money from the national tobacco settlement, and the release of money for the Rainy Day Fund. He has already proposed use of Rainy Day money for the 2003 Fiscal Year, which begins July 1st. Holden says budget planners had anticipated a significant reduction in capital gains tax revenue – about 20 percent. But, it now appears as though capital gains revenue will decline by 60 percent or more.