Tennessee's Treasurer Warns of Growing Budget Shortfall

Tennessee's state budget continues to spill red ink.

State Treasurer David Lillard says the revenue shortfall increased 13-million dollars over the last two months, and now stands at 69-million dollars.

Lillard says many state departments suffered a 14% reduction in the current budget cycle, but the real impact of that was offset by stimulus money.  "We used stimulus money to backfill 12% of that so it was about a 2% cut that was actually made but stimulus money runs out June 30, 2010 so at that point we'll have a full 14% cut that they are looking at."

Lillard says next year's budget will need to be cut by 290-million dollars to make up for the lack of stimulus funds, and he's sure layoffs will be considered to close the gap.

State lawmakers have already suggested as many as 1,400 state workers could be cut over the next two years.