Florida lawmakers are anticipating that, in spite of recent years' budget cuts and tax and fee increases, a continuation of state activities at their current level would produce a $2.6 billion shortfall for the fiscal year that begins July 1, 2010.

Amy Baker, Director of the Legislature's Office of Economic and Demographic Research, presented the latest projections to the Senate Ways & Means Committee on October 6, 2009. According to Ms. Baker's data, revenues will grow by 3.3 percent in the 2010 – 2011 fiscal year, but the state's “critical and other high priority needs” will see incremental growth of 17.4 percent, resulting in the $2.6 billion shortfall. The bulk of the shortfall would be the result of approximately $1.6 billion in additional Medicaid costs that the state will sustain once federal stimulus money runs out in December 2010.