You've heard the state is having budget troubles. Well, the troubles just got worse --- $155 million dollars worse!
Gov. Mike Leavitt: "We have known for some time that because of the economy and September 11th, that our revenues were down. But this is a dramatic shift, a dramatic drop."
There will some tough choices ahead for state lawmakers as the Utah faces a much bigger budget deficit than expected.
News Specialist John Daley has details.
Governor Leavitt: "That would be the largest single drop in tax revenue in state history."
State lawmakers got the news Monday. Tax revenues are much lower than projected.
So now, after lawmakers already axed $256 million dollars from the state's budget, the ax will fall again, to come up with $155-million dollars more.
Rep. Ralph Becker/(D) House Minority Leader: "This is a serious reflection on the state's economy."
The governor says three things caused the shortfall.
The terrorist attacks of September 11th, followed by
a prolonged national downturn.
And finally the Olympics, which left a few thousand people looking for work.
The state's constitution requires a balanced budget, so lawmakers will now look at every option.
Rep. Marty Stephens/(R) Speaker of the House: "The rainy day fund will be one of the first things we look at, but it will only meet about half of the expected shortfall."
Democrats suggest taking out loans to pay for new buildings instead of paying cash.
Rep. Becker: "We spent last session more than $100-million for buildings. You and I, who are homeowners, don't pay for our homes with cash."
They'll begin looking at options, but the governor made it clear, the cuts won't come easily or painlessly.
"I feel a sense of optimism that we'll work through this."
"But as a state, and as the best managed state in the nation, we'll work through it."
The governor says it's actually next year's budget he's more worried about.
So once they cover the shortfall, lawmakers may have to do some re-evaluating for 2003.
May 13, 2002
