Budget shortfall to rise by $1 billion

BY MARY ELLEN KLAS

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State economists are expected to give the state more grim news Tuesday as they present lawmakers their revised projections for how far the 2008-09 budget will fall below last year's budget expectations.

The shortfall -- now at $2 billion -- is expected to soar to more than $3 billion, according to preliminary estimates that will be completed at the end of the day.

The latest forecast comes on the eve of a legislative vote Wednesday on a $512 million budget-cutting package for the current year. Lawmakers are trimming the money from this year's spending plan to bring it in balance with the declining revenue picture. They already trimmed $1.1 billion from this year's spending plan in October and the current estimate will bring the total reduction in both years to more than $4 billon  [More...].