The Georgia Budget and Policy Institute this week predicted the state could face a budget deficit of at least $2 billion if revenues continue to decline at the current pace due to the slowdown in the economy.
The report noted that trends worsened toward the close of fiscal 2008. Third-quarter revenue declined by 3.7% and fourth quarter revenue fell 7.3% compared to third and fourth quarter figures in fiscal 2007. Total general fund revenues were $17.6 billion, down 1.4% from the $17.9 billion received in fiscal 2007. Revenues for fiscal 2008 were $771 million less than the estimate.