Florida Budget Shortfall for Next Year to Hit $1.96 Billion

Florida senators will be told later today they will face a shortfall of almost $2 billion when they start patching together the budget for next year.

The Senate Budget Committee is scheduled to get a revised bottom line this afternoon from the Legislative Office of Economic and Demographic Research, the states economists.

New numbers indicate the state will have $1.96 million less in the next budget year than the current year that ends June 30, if all revenue and expenses remain unchanged. Projections also show the shortfall would be $888.8 million in 2013 and $787 million in 2014.

Last week, state economists reported sales taxes are projected to bedown $267.1 million in the current year, with the overall budget shortfall for next year to be at least $1.3 billion.

The larger number released today as backup for the committee meetingis due to the addition ofprojected Medicaid costs.

The outlook has taken a dramatic turn in the past few months, blamed in part on the problems in the Eurozone, the debt ceiling debate and the nations Standard and Poors downgrade.

When the summer began, the forecast was for the state to be able to roll a potential $273.8 million surplus into the following budget year.