March 26, 2010
The Office of State Planning and Budgeting recently released their March budget forecast, which showed signs of improvement. For the first time since Sept. 2008, state revenues are not getting worse and the state budget looks like it may be in the black at the end of this year, although there is still a substantial shortfall in the budget for fiscal year 2010-2011.
The state is urging caution, as the budget is still anemic and the economy still volatile. Numbers also don’t take into account increase Medicaid caseloads and some other increased expenditures attributable to the recession. Thus, at this time, there are no plans to reverse any of the cuts made for this or next fiscal year. However, the forecast is mildly encouraging with some signs of stabilization and the beginnings of recovery. It brings hope that additional state cuts can be avoided.
