Roughly halfway into the budget year, sales and income tax revenues are about $208M below projections - this after big spending cuts, boosted fees, and forcing teachers to pay more into their pensions.
The shortfall has forced the state to raid its rainy-day fund and budget-reserve funds. That's a particularly big problem, says Budget Director Paul Potamianos, given the strength of the economy. What happens when a recession hits?
The governor this week proposed a mix of spending cuts and tax increases to help fill the hole.