BATON ROUGE, La. (AP) - An unexpected drop in state tax
collections has created a midyear budget deficit that could be as
high as $400 million.
The news has been delivered to Gov. Bobby Jindal's
administration by state economists. It complicates an already
dismal state financial picture as lawmakers prepare for the start
of their annual session in two weeks.
The governor cut $248 million in the middle of the current
2009-10 fiscal year to adjust for shrinking tax collections. The
latest deficit presents a worse problem since it's happening so
late in the fiscal year. Any cuts that are made can only be spread
over two or three months.
LSU economist James Richardson on Monday told The Times-Picayune
the latest deficit stems from February tax collection figures that
show sales and personal income taxes were far lower than economists
predicted.



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