another year, same as the last

The state released new information this morning regarding the magnitude of the state budget deficit for this fiscal year. Previously, it was reported to be projected at $1.5 Billion for the year; today's reports indicate a projection of $2 Billion.

Last year, the trend of escalating state budget deficit was a common quarterly announcement. It looks like the trend is continuing. Several economic indicators such as unemployment rates and income tax revenues demonstrate contrary evidence that the recession is over. Until those indicators begin a continuous and sustained upward trend the state revenues will not increase. It's really quite amazing how one instance of positive movement in an indicator stimulates the media to spin it into an economic turnaround.

We have already run forecasting models based on the initial deficit projection. Today, I have requested that we expand that modelling to a higher level of deficit reductions.

As you may know, we have adapted a strategic financial analysis model to our financial and budget processes. I am confident that we can maintain the financial strength of the college by using these analytic processes; however, I don't know at what expense to current operations.

As the year progresses, and the legislature reconvenes, we will be getting more news; and, I know it won't be any better than what has been released already. I'll try to keep everyone informed as we learn more.

Mike Kearns