The state Council on Revenues, chasing a slumping economy, today substantially lowered the state's revenue forecast for the fiscal year that ends in June.

The council estimated that revenues would decline by 9 percent, down from the 5 percent drop predicted in March, a $185 million loss for the state.

The council projected there would be zero revenue growth in fiscal year 2010, down from 0.5 percent growth, an additional $22.5 million loss for the state.

Economists on the council acknowledged that their forecasts over the past
year have missed the extent of the economic decline.

"We keep chasing this down," said Paul Brewbaker, the council's chairman. "We never seem to get ahead of it."

The new forecast will likely trigger substantial new state spending cuts. Gov. Linda Lingle already ordered an additional 2 percent spending cut to state departments last week in anticipation of the lower forecast, but may now have to go deeper.

State lawmakers had used the council's March forecast to draft their two-year budget. Although they built in a cushion in case the council was off, the new forecast exceeds the cushion and leaves the budget out of balance.