State Will Have to Cut Sooner, Bredesen Says

Governor Phil Bredesen says the state will no longer be able to put off some of the cuts he had hoped to avoid with his planned budget. That’s after the state’s budget gap widened last week, triggering possible furloughs and layoffs.

The state is now facing an additional $200 million shortfall due to faltering tax revenues in April.

Bredesen has already proposed a budget with freezes on hiring and pay raises, but no layoffs. But after this latest blow he says he’ll again consider trimming payrolls.

“We haven’t decided exactly what we’re going to do yet, but it certainly puts back on the table the idea of some personnel actions fairly quickly.”

Bredesen also says the state will likely have to tap further into its reserves.