Panel predicts doubling of deficit

Portland Press Herald, February 26, 2008

(excerpt) With a budget shortfall already set at $95 million, a state panel on Monday affirmed another $95 million downward adjustment in revenue.

The Revenue Forecasting Committee, mirroring action it took in November, scaled back its revenue projections largely to reflect negative economic trends that are expected to further limit state tax collections.

The new adjustment effectively doubles the budget shortfall facing the Legislature and Gov. John Baldacci, who has put forth a package of proposals to cover the first $95 million shortfall.

Monday's action by the forecasting panel was widely anticipated. Still, a formal revision downward set the stage for new debate in earnest about how to put the two-year, $6.3 billion general fund budget back in balance.