Radogno says the state stands to lose about $5 billion in revenue annually. “There will be a big revenue hole unless spending is dramatically curtailed,” Radogno warns.
While she prefers cuts, Radogno says she’s open to a gradual, rather than immediate, rollback of the increase, but believes the entire issue will be put off until the lame duck session following the election in November.
UPDATE x1: Officials from the Commission on Government Forecasting and Accountability told lawmakers Tuesday the preliminary revenue forecast for the next fiscal year will be $34.4 billion, which is down from $36 billion this year.
The drop in revenue reflects the expected decrease in the state's income tax, which is scheduled to drop from its 5 percent to 3.75 percent at the end of the year.
According to AP, some Democrats want the tax increase extended while many (but not all) Republicans oppose it.