State revenue shortfall grows to $454 million

What was a $200 million projected shortfall a couple of weeks ago has now swollen to $454 million, and the governor has asked state agencies, schools, and programs to outline how they'd manage 4% cuts.  According to news reports, the refrain from the governor's office is that, when it comes to what and who would be impacted by the cuts, "nothing is off the table."

If nothing is off the table, now seems like an opportune time for state lawmakers to support real revenue reforms.  There seems to be movement around a cigarette tax increase, and gambling always seems to take more space in the debate than it warrants.  But a cigarette tax increase, while good and necessary health policy, won't raise all the revenue needed.  And neither proposal does anything to address the unfairness of our tax structure. 

If the state elected to cut specific programs, school systems could face hardships because they already are halfway through the fiscal year. Many districts already have large amounts tied up in contracts, such as agreements with teachers, that would be hard to change.

[Robert Sexton of the Prichard Committee for Academic Excellence] said this might be the time for supporters of education to rally for more revenue. A cigarette tax increase might help, but it wouldn't be enough, he said.

"The cigarette tax will offer some help, but it's not a long-term solution," Sexton said.

The state ultimately needs a "major tax overhaul" to repair a "fundamentally flawed tax system," he said.