FRIDAY,MAY3,2002
NEWS
THE UNIVERSITY DAILY KANSAN = 5A
SMOKY BEAR
AARON LERNER/KANSAN
Abby Rearden (left), St. Louis freshman, and Carrie Kruger, St. Louis freshman, stop to share a cigarette during the presentation of their Design II projects. Kruger said the objective of the projects was to portray an unusual place that each student had been by dressing as something they would find there.
Graves says state to face deficit
TOPEKA — With a proposed budget awaiting House debate, Gov. Bill Graves acknowledged that the state is headed for a deficit in the current fiscal year and may be forced to furlough or lav off workers.
Legislative negotiators drafted and sent both chambers a compromise, $4.4 billion budget for the state's 2003 fiscal year, which begins July 1, and the House planned to take it up first yesterday.
Following their debate on the compromise budget, House members expected to take up a proposal to increase taxes to raise money for highway projects, which are financed separately from general government programs. Senators planned to debate proposals for increasing taxes after House members acted on both the budget and transportation plan.
The three senators and three House members who drafted the compromise budget assumed it would require $222 million in tax increases.
But that didn't take into account a shortfall in April revenue collections. Graves released preliminary figures Wednesday showing the state collected $50.3 million less in April revenue collections than expected.
Revenues had trailed the forecast in March, and, officials said, were likely to do so again in May. Total revenue in the 2002 fiscal year, which ends June 30, could end up $100 million below the $4.2 billion that was predicted last month, said State Budget Director Duane Goosen.
A forecast issued March 8, showed the state ending the 2002 fiscal year with $36 million left in its treasury. Instead, the revenue shortfalls in March and April alone would leave a deficit of $41 million.
"You can't pay bills if you don't have cash." Goo森 said.
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