In the "It's going to get worse before it gets better" category

I work for the judicial branch of the government and we had our money talk this morning. We listened to a description of 3 years of fiscal budget depressive dialogue. Past - the executive branch has taken all of our reserve money for 07-08 which my understanding is about $20 million. We are expected to give $500,000 back for 08-09 and $1 million for 09-10. Ok, so what does that mean for the worker bees. Well hopefully it won't mean a loss of a job - but as of right now there are no promises. We have been told to cut back on purchases (which we had already started doing) and we are cutting back on travel. Not that we won't have to travel but we will have to carpool and make other sacrifices.

The article below mentions part of the states problem. Here's my question: How do you get $140 million dollars in debt. Why are you spending money that you don't have? Now I know a lot has to do with the fact that TN relies heavily on it's state tax. So when people stop buying then the revenue goes down. BUT, I also know that some of the bigger picture is the waste of things that government spends. Governors mansion comes to mind. The raises that judges received in the beginning of the year. The state cars that many judges and higher ups get and use.

One more thing... If one more person says "People just need to go out and buy. Cars, electronics, furniture, appliances then things will start getting better." I will personally haul off and hit them. And then when they are on the floor I will say "With What!?"

Anyway, that's my tangent.

********************************************************************************************************************

WPLN Nashville
State Will Pull from Rainy Day Fund
State finance officials believe they will have to tap the rainy day fund to get through this budget year.

Just two months into the fiscal year, departments have been asked to reduce spending by 106-million dollars. Finance Commissioner Dave Goetz.

“Now, that’s 106-million against what is already a 140-million dollar shortfall. So we know that’s not going to be sufficient, and we’re looking for other ways we can in fact keep expenditures down.”

Goetz says the shortfall could reach 600-million dollars by the end of the fiscal year. That shortfall is compared with revenue projections that were nearly flat compared to last year.

The rainy day fund has 750-million dollars in it. TennCare has its own reserves amounting to 550-million. Goetz says he expects to use money from both accounts to help pad the sharp loss in tax revenue.