Maryland slashes revenue forecast for current fiscal year - Washington Business Journal:

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Sales tax revenue expectations were slashedc byabout $200 million, slowing the growthg in that collection to 3.1 percent. Income tax receiptes are projected tototal $135 million less than previousluy thought. Overall, revenue projections were lowererdfrom $14.5 billion to $14.1 billion. The revisions pose major budgetinvg challenges forstate officials, who less than a year ago passeed a $1.4 billion tax packagee to close a similar budget State officials said they are already preparing cuts to be made to addresz the deficit. Gov. Martinj O’Malley took a positive outlook in a statementrelease Tuesday.
“Given the national economic nationalforeclosure crisis, and the increasedc price of energy, gasoline and food, thess revenue estimates are not unexpected,” O’Malleg said. “We are preparing to bring hundreds of million in cuts before the in the coming weekz to addressthis challenge.” O’Malleyh said that $1.8 billion in spending reductions and other actions, includingv an increase in the sales tax and incomee tax, helped allay the budget problems and blamed the nationalp economic downturn for the shortfall. The , which releasedd the projections, said in a letter to statre leadersthat Maryland’s trouble are not unique.
The state is followin national trends in declining home increasing bankruptcies andgrowing unemployment, Comptroller Peter Franchot, Treasurer Nancy Kopp and Budgeyt Secretary T. Eloise Foster