State economists predict Fla. budget gap to narrow

TALLAHASSEE, Fla. (AP) — State economists say Florida’s budget gap for the next fiscal year will drop by more than half.

A new long-range financial outlook released Friday estimates the difference between general revenue collections and critical to high priority needs at $2.5 billion for the budget year beginning next July 1.

The prior estimate this spring had predicted a $5.5 billion budget gap.

The update says that if only the most critical needs are included the gap would drop to $828 million.

The biggest factor contributing to the potential red ink is the loss of federal stimulus money as that program will end before the new budget year begins. The current budget includes nearly $2.6 billion in stimulus.