The state's budget picture continues to get worse, with tax revenue sliding and no immediate end in sight, a legislative commission warns in a new report.

The state's budget picture continues to get worse, with tax revenue sliding and no immediate end in sight, a legislative commission warns in a new report.

The legislature's Commission on Government Forecasting and Accountability on Friday issued its review of state revenue covering the first quarter of the budget year that started July 1.

Overall, the state brought in $910 million more than it did during the first three months of the last budget year - an increase of nearly 13 percent. But that figure is misleading.

The state borrowed $1.25 billion this summer to help deal with long-overdue bills and received an extra $289 million in federal money during the first quarter compared to last year. Take the borrowing away and the state's bank account has about $340 million less than it did at this point in fiscal year 2009, COGFA found. The drop hits $629 million less if you cut out the increase in federal money.

Personal and corporate income taxes and sales taxes all have seen large declines.

COGFA calls the magnitude of such falloffs "unsettling and serve as a reminder that despite being in a recovery phase, revenues should not be expected to abruptly improve."

GateHouse News Service State Capitol Bureau