December 15, 2010. Analysts lower expectations for tax receipts, State economist says revenue enough to cover this year’s gap, but that means much less for 2011-12.

By Katherine Whittenburg
December 15, 2010

TALLAHASSEE – Florida’s upcoming bad budget year is looking even worse, now that state analysts are predicting a shortfall of at least $3.5 billion in revenue to cover the Florida’s most basic needs.

That’s a jump from the $2.5 billion budget gap that the analysts were predicting just a month ago for 2011-2012, which starts July 1. And it could easily could widen to a $4.5 billion, depending on how much money lawmakers decide to set aside for a rainy day.

That’s bad news for Gov.-elect Rick Scott, who ran for election on pledges to slash business and property taxes. Scott claims that tax cuts will boost the economy and improve the state’s fiscal health, but when and to what extent that would happen remains unclear.

In the meantime, Scott will have to propose his first state budget proposal in early February based on Tuesday’s revenue estimate. Come spring, lawmakers will be constitutionally obligated to pass a balanced budget for the coming fiscal year, based on the latest projections.

Asked about the latest gloomy turn in revenue forecasts, Scott spokesman Brian Burgess, said it’s too soon to start delving into the specifics of the governor-elect’s budget proposal.

Read more at tbo.com