JFAC has now voted unanimously to adopt a fiscal year 2010 year-end contingency plan, offering tools to Gov. Butch Otter if state revenues continue to slide this year. The budget was set on the estimate that revenues this year would fall 7.5 percent below last year's level, but legislative budget director Cathy Holland-Smith noted that they're now running 9.5 percent below. If that keeps up, the governor would either have to find more money to balance this year's budget by June 30, or call a special session of the Legislature.

The plan allows the governor, if necessary, tap into the budget stabilization fund, the economic recovery reserve fund and unspent project money in the Permanent Building Fund to balance this year's budget, a total cushion of about $107 million. The option to tap the building fund is a new one.  The money from the reserve funds is already committed in the fiscal year 2011 budget - so if it's tapped, other steps would have to be taken to balance next year's budget. "We certainly hope that the gentleman on the 2nd floor will not have to take the actions that have been outlined," said Sen. Dean Cameron, R-Rupert. "Obviously if he does, that's because the economy has deteriorated further than even what we have projected, but this is a contingency plan to give him the tools necessary to act in case April numbers and early June numbers don't meet with expectation. Obviously this is not without some risk." If the reserve funds are tapped, Cameron said,  "It will require some actions for 2011, and I know the cochair and I and others will certlainly stand with him and be ready to help him if and when those decisions need to be made and those actions need to be taken."

Said Rep. Maxine Bell, R-Jerome, "We'll all hope that the economy strengthens and the revenues come in in April, and this gathers dust someplace."