Budget shortfall worse than expected

December 18, 2008 9:00:00 PM PST
The state's finances are in worse shape than predicted according to a new report put out Friday.As the economy worsens, state revenues have also fallen. Numbers for the first five months of the fiscal year show the dollars coming in are $520 million below what lawmakers projected when they wrote the state budget.

That's 6.1 percent below the forecast of $7.2 billion.

The numbers show the economic forecast is just getting worse. Revenues were only 5 percent below projections last month.

Gov. Mike Easley has already asked state departments to prepare for budget cuts.


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