Senate Ways and Means Committee Budget Outlook: Now a $2.7 B Shortfall

A new outlook from the Senate Ways and Means Committee shows the effects of the June revenue forecast.  As expected, the hole has deepened to about $2.7 billion.

Ways and Means staff explain their forecast this way:

[It) generally reflects the assumption that future revenue and spending
corresponds to historical trends. However, due to the complexity and potential
volatility surrounding the state's economy and factors impacting state expenditures,
this estimate should be seen as a baseline estimate to inform the Legislature and the
Governor of the current budget outlook and aid in longer term fiscal planning.

As they have done in past, it is anticipated that the Governor and the Legislature will
use available reserves and implement spending reductions and/or revenue changes
to balance the 2009-11 budget.

I'd like to see a little more talk now about those "spending reductions and/or revenue changes."