Mead: More Budget Cuts NeededIn a budget session that is already going to be tight, Governor Mead now says further cuts will need to be made.
The state's revenue is largely based on minerals and the price of natural gas. When Mead submitted his budget proposal in December, the price of natural gas was $4. The latest revenue forecast now has that price around $3.25.
"I didn't spend all the money we had at $4." said Governor Mead. His budget had roughly $87 million left ofter. "But [that money] is gone. And now we have roughly about $50 million we have to find somewhere else based on $3.25 gas."
Mead says it could get worse with the potential of as much as a $2 reduction in natural gas prices from what was originally forecast.
Governor Mead and his staff are now in the process of submitting amendments to the joint appropriations committee for the budget.