It is important to note that while the headlines will say that there is a billion dollars shortfall, that is just for the General Fund.
The new revenue projection numbers actually indicate a nearly two billion dollar reduction in revenue - $1.074 billion in reduced General Fund Revenue, and $967 million reduction in direct oil-tax revenue.
In addition to the impact on the General Fund, as we predicted in November, one area to get hit hard by this revision will be political subdivisions.
This particular piece will likely give local governments an excuse to raise property taxes when the next local budget season gets started. And backers of higher sales tax such as in Bismarck will also use this as an excuse to support their agenda of higher taxes.