The Governor’s proposal for closing the gap consists of the following items — roughly speaking 1/3 savings, 1/3 new revenues and 1/3 use of reserves.
Taxes
Does the state have a structural deficit in its budgeted funds?
The answer appears to be Yes in the sense that we face needs that considerably exceed revenue as we prepare the 2009 budget and look out over the next few years.
What are the major sources of revenue that support budgeted expenditures?
Taxes, fees, lottery profits and grants from the federal government comprise the bulk of the available revenue for budgeting.