Arizona analysts say budget shortfall could grow again as revenue collections slip again

Ariz. state revenue collections decrease again

PHOENIX — Arizona lawmakers and Gov. Jan Brewer recently reduced the state’s budget shortfall, but legislative budget analysts now are warning that it could grow in size again.

Spending cuts and other budget-balancing action during the November special reduced the projected shortfall from $2 billion to $1.6 billion.

But the Joint Legislative Budget Committee’s staff reported Monday that the shortfall could increase because October was the 15th straight month that General Fund tax collections dropped by double-digits compared with the previous year.

The JLBC staff says October revenues of $455.5 million were down nearly 24 percent from October 2008 and $142 million before the forecast for the current year’s budget.