Florida Revenue Drops, Budget Shortfall Grows

TALLAHASSEE (CBS4) – The state of Florida was already set to face a budget shortfall of roughly $3.62 billion. But, numbers being reconciled on Friday boosted that number to almost $4 billion, after some revenue revisions by state economists that paint a less favorable view of the state’s economic recovery.

Governor Scott and the Legislature see the deficit increasing between $110 million and $332.4 million. The Department of Revenue said the deficit will actually decrease by $47 million, but late Friday, State economists said general revenue will be $215.8 million lower than expected. That, they say, will increase Florida’s budget shortfall by just under 1%, likely meaning deeper cuts in a year when massive cut are already on the table.

The biggest difference between the three estimates deals with the sales tax.

The Legislature is forecasting a drop of roughly $193.7 million while Scott’s office sees a decline of about $108.8 million. The Department of Revenue projected the smallest drop of roughly $16.6 million.

However, after reviewing the numbers Friday, the consensus was a slower than expected economic recovery has depressed sales tax revenue well below predictions, leading to an agreement that revenue will be almost a quarter-billion less that anticipated.

In addition, the corporate income tax is projected to be down by $137.5 million by the Legislature; $47.4 million according to Scott’s office; and $5.3 million by the Department of Revenue.

(© 2011 CBS Broadcasting Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The News Service Of Florida contributed to this report.)


One Comment

  1. Arey says:

    What a joke this Scott is!

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