Back in December, the Governor issued an executive order to cut $120 million from the FY10 budget . He did this, according to our report, based on an overly pessimistic review of the November 2009 tax revenue collections. When collections rose in December, the Governor said “we must stay the course.” We said then that it was highly unlikely that the state needed to make these cuts this deep and that there would be a slim chance that revenues would fall by $120 million. Now it appears we were correct, but we won’t know for sure until the first of July.
Side note: Budget 101: Governors often like to make cuts in the budget mid-year to reduce the base, that way it doesn’t appear that they are cutting programs when the debate heats up in March. And this Governor has been adamant about not increasing the base. One could ponder whether his actions are just a ideological tilt toward reducing the size of Government. Remember, they give out awards for this type of behavior.
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