NASHVILLE, Tenn. (AP) -- Administration officials have asked state departments and agencies to draw up plans for a possible 3 percent cut in their operating budgets next year.
The Chattanooga Times Free Press reports Finance Commissioner Dave Goetz told officials in a memo last month that "because of current economic conditions, we must assume that we may undercollect state revenue estimates in the current year, lowering the base for projecting 2009-2010 revenues."
The finance department reported this week that the general fund missed projections by about $50 million in August, mostly on worse-than-expected sales and corporate tax collections.
Corporate franchise and excise taxes came it about $26 million below the budgeted estimate of $41 million. Sales taxes came in at $21 million below projections.
(Copyright 2008 by The Associated Press. All Rights Reserved.)
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