A new report by the Senate Fiscal Agency projects that state tax revenue for the General Fund and School Aid Fund for Fiscal Year 2010, which begins in October, will fall $2.1 billion short of the revenue projections from January, 2009. Total revenue is estimated at $17.1 billion.

Overall, the SFA projects a $1.5 billion deficit for the end of FY 2010. Because Michigan has a balanced budget requirement in the state constitution, that deficit will have to be eliminated with budget cuts during the fiscal year, similar to those passed a couple weeks ago to balance the budget for FY 2009.

The report also says that the state will have access to approximately $949 million in stimulus funding that could be used to help balance the budget in FY 2010, but that still leaves nearly $600 million in cuts to reach a balanced budget.