On Thursday, Treasurer Scott Meacham declared a revenue shortfall for the current budget year, FY ’09, and announced that state agencies would be required to take an across-the-board cut in their allocations for June, the final month of the fiscal year. After five straight months of steeply declining revenues, General Revenue Fund (GRF) collections in May reached the point where they had fallen below 95 percent of the certified estimate upon which FY ’09 appropriations had been allocated. Through May, GRF collections were at 94.9 percent of the estimate. This translates to a shortfall of $6.8 million.
The constitutional language related to revenue shortfalls is found in Article 10, Section 23.10; the relevant section states:
(T)he Legislature shall provide that all appropriations shall be reduced to bring them within revenues actually collected, but all such reductions shall apply to each department, institution, board, commission or special appropriation made by the State Legislature in the ratio that its total appropriation for that fiscal year bears to the total of all appropriations from that fund for that fiscal year.
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