OLS budget chief David Rosen told lawmakers today that if the revenue growth rate remains at its current level, as predicted by a bond rating agency earlier this week, revenues will come in $2.2 billion below projections through Fiscal Year 2013.
That prediction adds an additional $900 million shortage to the already bleak OLS prediction of a $1.3 billion shortfall.
Earlier this week, Moody’s Investor Services projected that the current revenue growth rate would continue into next year, remaining “muted.”
Rosen stressed that the budget prediction from OLS was far rosier than the Moody’s prediction and has a built in acceleration.
“However, we believe that it is at least as likely that a continuation of weak recovery, or worse, will produce revenues below those that we are presenting today,” Rosen said.