Amid signs that the state is facing a steep cash shortage, the state treasurer refused Tuesday to disclose the latest financial forecast, angering lawmakers and heightening worries that cuts in spending are looming. All 120 members of the Legislature are up for reelection this fall. One Republican lawmaker even asked the administration to freeze state spending over the next six weeks and to halt any new hiring. But he downplayed concerns that the state is facing a fiscal crisis, and, echoing a refrain shared by other Republicans, said the budget will eventually be balanced without massive cuts.
Lawmakers have a limited arsenal of tools to deal with the shortfall.
They could scrap new proposals, cut existing programs, or raise taxes. Another possibility is that the administration could revise its estimates and offer a more optimistic forecast than the non-partisan Office of Legislative Services. Tuesday's report was the second time this year the office has disputed the administration's revenue forecasts as too rosy. The opinion is only advisory. Lawrance was expected to challenge those figures Tuesday, but instead took a pass, telling the lawmakers that his office hired a team of analysts last month to more accurately predict how much the state can collect from capital gains taxes from the sale of stocks and other investments.