In response to a $58 million drop in state revenue forecasts, Speaker of the House Shap Smith met with Governor Douglas, Lt. Governor Dubie, and Senate President Pro Tem Peter Shumlin on April 27 to craft a joint solution to address budgetary challenges. Economists Jeff Carr, representing the administration, and Tom Kavet, for the Legislature, estimated that the state could fall $250 million into deficit in the next few years.
In the past 12 months, the legislature has made roughly $110 million in cuts and other adjustments to state programs and services. State spending without the federal stimulus funds in Fiscal Years 2009 and 2010 is below FY 2008 spending.
The magnitude of this crisis demands that all options be on the table, said Senator Shumlin.
Making $110 million in cuts and adjustments has significantly damaged state services and have not been easy to make, Shumlin said. Unfortunately, the revenue downgrade has made the choices ahead of us even harder.
We have incredibly difficult decisions ahead of us, said Speaker Smith. In order to solve this crisis the leaders of state government need to work together and take a balanced approach.
Source: Senator Shumlin's office
$58 million shortfall called crisis by legislative leaders
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