State revenue $1.8B behind projections, forecast says

A new revenue forecast predicts Indiana state government will take in $1.8 billion less during the current two-year budget
cycle than what lawmakers thought based on May projections.

A fiscal forecast panel told the State Budget Committee
on Tuesday that it used updates on economic conditions in reducing its projections through the end of the budget cycle in
July 2011.

The state already has taken in $475 million less in revenue during the first five months of this fiscal
year than what was predicted in May. Lawmakers used that May forecast in passing a new budget in June.

The revenue
declines already have prompted Gov. Mitch Daniels to announce a series of budget cuts.