Tennessee Funding Board announces revenue projection, $585M shortfall expected next year

NASHVILLE, Tenn. (AP) -- State Funding Board officials say Tennessee faces a projected shortfall range of as much as $384 million this year and up to $585 million next year.

University of Tennessee economist Bill Fox, the General Assembly's Fiscal Review Committee and the Department of Revenue presented their projections to the panel earlier this week.

The board on Thursday went with a projection of $314 million to $384 million this year. That's on top of the $180 million drop Gov. Phil Bredesen had projected in February.

For the budget year beginning July 1, the board projected $468 million to $585 million less than Bredesen's budget proposal.

Before making a final decision, the board sought clarification of sales tax estimates for this year. The difference between the lowest projection and the highest was more than $100 million.

(Copyright 2008 by The Associated Press. All Rights Reserved.)

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