The latest state revenue forecast adopted today dropped income estimates by another $197 million this year, leaving the state with a midyear deficit to close.
Economist Greg Albrecht, with the Legislative Fiscal Office, says sales tax revenue has plummeted, and the uptick in severance and royalty money from oil prices isn't enough to combat the sales tax drop.
Division of Administration Commissioner Angele Davis said the reduction forecast would trigger cuts in spending to balance this year’s budget to $7.8 billion from $8.06 billion. That’s the money that state sources contribute to the annual $28.9 billion budget, she said.
The latest forecast was approved by the Revenue Estimating Conference.