State tax collections plunged 35% in April, and more importantly they plunged 20% below the newly revised budget benchmark set by the Governor only three weeks ago. That number appears to have shocked Beacon Hill, with the FY2009 budget deficit now estimated to be as high as $950 million. With two months left in the fiscal year there is little room to move for the Governor and the Legislature, with still no announced plan to combat this deficit. While the size of the April shortfall has been shocking the fact that there was a widening gap in 2009 should not have shocked anyone who can read numbers. What is startling is that there has been no action taken for months when everyone knew there was a problem. The State’s rainy day fund has plunged to $1.2 billion, and is likely to take another major hit to close the FY2009 gap. This will no doubt impact the Senate’s version of the FY2010 budget, which will downgrade revenues by over $1 billion. That downgrade includes the sales tax revenue from the House of $900 million. It is an unmitigated disaster, and is going to force a major change in government. If we cannot all get behind reform now, then when will it happen? The Tribune has a story on the Senate and the FY2010 budget, in which Sen. Baddour vows to add no earmarks back into the budget produced by the Senate Ways and Means Committee. Read the Tribune story here.
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Bill Manzi.com 
Everybody hold hands and sing:
“The wheels on the bus go round and round
Round and round, round and round …”
-FM
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Your Honor,
When I first joined this blog, centuries ago, we had a discussion where I questioned why the legislator always larded up the budget to the max. That would continue until revenue fell and taxes would be increased. Ultimately the economy would turn around and the revenue would climb substantially, mainly due to the added taxes which were never retracted to their original rates.
Now we are in serious revenue short falls and the same crowd not only wants to raise taxes, but wants to lard up the budget,, as well. Problem is the taxpayer is taxed to the max.
To resolve the issue, serious spending cuts have to be made and this gang of idiots are mentally unable to take on the task because it would infuriate the advocates and the unions, their constituency.
I noted your anger in the Trib piece, and I don’t blame you. This is going nowhere until these scalawags are kicked out.
How about a campaign with posters and radio adds directed at the voters (all stripes) that simply says “vote for the other guy.”
Nothing will get accomplished until there is a turnover of the legislature.
A couple of things: I noticed your ‘friend’, Senator Baddour has promised not to include any earmarks in the senate budget. I also notice his reform – before – revenue ‘pledge’ has disappeared from his lexicon.
Jules
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