Maryland slashes revenue forecast for current fiscal year - Washington Business Journal:

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Sales tax revenue expectations were slashed byabour $200 million, slowing the growth in that collectiob to 3.1 percent. Income tax receipts are projecteed tototal $135 million less than previouslyh thought. Overall, revenue projectionws were loweredfrom $14.5 billion to $14.2 billion. The revisions pose major budgeting challenges forstatr officials, who less than a year ago passed a $1.4 billiohn tax package to close a similar budget shortfall. State officials said they are already preparingt cuts to be made to addressthe Gov. Martin O’Malley took a positived outlook in a statementreleased Tuesday.
“Givenn the national economic downturn, nationalo foreclosure crisis, and the increased pricew of energy, gasoline and food, these revenue estimatess are not unexpected,” O’Malley said. “We are preparingb to bring hundreds of millions in cuts befor e the in the coming weeks to addressthis challenge.” O’Malley said that $1.8 billionj in spending reductions and other actions, includingg an increase in the sales tax and incom e tax, helped allay the budget problemsa and blamed the national economic downturn for the shortfall. The , whichb released the projections, said in a lettet to state leadersthat Maryland’s troubles are not unique.
The statd is following national trends in declining home increasing bankruptcies andgrowing unemployment, Comptroller Peter Franchot, Treasurer Nancg Kopp and Budget Secretary T. Eloise Fostet wrote.