Shortfall Prompts Agency Budget Cuts

A state revenue shortfall for July prompted a 5 percent across-the-board cut in agency budget allocations today.

That followed the discovery that revenue collections for July, the first month of the new fiscal year, are well below prior year collections and the official estimate.

The shortfall is great enough that state officials immediately ordered an across-the-board budget cut in budget allocations to all state agencies this month, State Treasurer Scott Meacham said.

Preliminary reports for collections in the month of July show General Revenue Fund collections totaled $336.7 million. That amount is $120.4 million or 26.3 percent below the prior year and $74.4 million or 18.1 percent below the estimate.

In response to the shortfall, State Finance Director Michael Clingman ordered a 5 percent across-the-board reduction to each state agency’s allocation in the month of August. This amount represents a total cut in allocations of $21.9 million for the month of August.

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