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State Budget “Trigger” Mechanism Memo

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When the Legislature passed the 2011–12 state budget in June, they assumed a sizable ($10 billion) increase in revenue based on projections of an improving economy. To account for the uncertainty of that revenue, the Legislature included a set of automatic “trigger” cuts that would be implemented if revenues fell short. The trigger cuts were divided into two tiers, depending on how far short revenues fell.

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