While the state's leaders have agreed on a plan to fill the huge revenue shortfall in 2002, even larger deficits in 2003 and beyond remain unaddressed. Almost $1.3 billion will be drawn from reserves in 2002, and another $134 million of "savings" will come from unwisely reducing the contribution to the state's massive unfunded pension liability. In contrast, only $400 million of spending will be cut from the state's $23 billion budget in 2002, including $100 million of one-time reductions and other yet-to-be-identified savings. The failure to reach agreement on more significant spending cuts and other structural solutions in 2002 will make it much more difficult to achieve a balanced budget in 2003.
April 01, 2002
FY Pre-2008
Missed Opportunity in 2002 Creates Larger Fiscal Problem in 2003
While the state's leaders have agreed on a plan to fill the huge revenue shortfall in 2002, even larger deficits in 2003 and beyond remain unaddressed. Almost $1.3 billion will be drawn from reserves in 2002, and another $134 million of "savings" will come from unwisely reducing the contribution to the state's massive unfunded pension liability. In contrast, only $400 million of spending will be cut from the state's $23 billion budget in 2002, including $100 million of one-time reductions and other yet-to-be-identified savings. The failure to reach agreement on more significant spending cuts and other structural solutions in 2002 will make it much more difficult to achieve a balanced budget in 2003.
