Revenue Is Up for the State Budget but the Picture Is Far from Rosy

State lawmakers are keeping a close eye as tax collections roll in. They are hoping that will help with shortfalls in Medicaid and relief for Hurricane Irene. The economic analyst for the General Assembly, Dr. Barry Boardman, gave members of a legislative commission reasons to cross their fingers.  He said tax collections were above the estimates for the state budget.

Then came the hammer. The housing market continues to depress the economy and consumer spending so the tax collections may not hold up. That slump also is a drag on job growth. Boardman said the state economy remains susceptible to negative economic shocks. He said the global economic situation has also lowered growth expectations.