State Budget Committee Gets Sobering Outlook

Florida's revenues were already facing a $2.5 billion deficit, but legislators received more bad news Tuesday during a budget committee meeting, where a state economist said general revenues dropped further than expected.

Amy Baker, coordinator for the Office of Economic and Demographic Research, told state Senators that general revenues as of October were $136.1 million less than was projected, with another $100 million likely to fall in November. Those forecasts do not include the effects of the oil spill in the Gulf earlier this year.

Meanwhile, built-in expenditures like Medicaid costs, are rising. Baker said that while final Medicaid forecast is expected Friday, it is likely to increase significantly from the previous year.

Full story on Florida's economy and budget outlook to follow.