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OMB orders a new state revenue forecast

The state’s Office of Management and Budget has asked Moody’s Analytics to start preparing a new state revenue forecast.

That – after November tax collections came in under forecast.

"Overall, for the month of November, we were short of our projections $40 million," said state budget director Pam Sharp. "Even worse than our net $40 million for the month, is that wewere down $50 milliom in sales tax."

Sharp says income tax collections were stronger than forecast – and she says that’s due to income tax withholding.

Sharp says the new forecast preparations start now, and will likely be completed by the middle to end of January.

"The whole process is going to take some time," said Sharp. "You've got the holidays in there as well."

Sharp says Governor Dalrymple has allocation power over general fund agencies – and under state law, he can cut up to two and a half percent across the board. She says once that’s done, the Governor can start using the budget stabilization fund to make up for some of the lost revenue. That fund has $572 million in it. And K-12 schools won’t have to cut – because there is a special K-12 stabilization fund, that has more than $600 million available.

In a statement, Dalrymple said while the state will have to do a little belt-tightening in 2016, the state remains fiscally sound.

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