The state budget’s in worse shape. Despite the state budget cuts enacted earlier this month, officials say more cuts may be needed as tax revenue is dropping due to the recession. Things seem even bleaker for the next state budgeting year, which begins July 1st. For example, public schools have been promised a 150-million dollar increase in state aid, but that could be in jeopardy. Legislative Fiscal Bureau director Dennis Prouty says it’ll be a shock to some as a lot of legislators have never dealt with a downturn. Prouty says the legislators will have to make some “real cuts” to deal with the downturn.House Appropriations Committee Chairman David Millage, a republican from Bettendorf, says some state programs will be eliminated. He says it’s not pleasant, but they’ll have to deal with it like everyone else deals with budget problems.The three-member panel that estimates state tax revenues meets next week and will likely reduce its prediction of tax receipts for the present budgeting year. That will force lawmakers and the Governor to make additional cuts in this year’s state budget.
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