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The state’s financial health just went from bad to worse. Sales tax collections continue to drop like a rock, leaving the state with a 2.2 billion dollar budget hole. As Whitney Ray tells us, the budget void will have to be filled; the only question is how.

Hear it Here: State Faces a 2.2 Billion Dollar Budget Hole

Floridians are buying fewer cars, hosting fewer tourists, and even smoking less. The decrease in spending is taking a toll on the state budget. Friday state economists met to discuss just how deep Florida’s budget hole will get.

The state could tap rainy day funds to bridge the budget gap or call lawmakers back to Tallahassee and let them decide how to balance the state’s checkbook. Florida’s Chief Financial Officer wants lawmakers to do the job.

“I still believe it’s going to need a special session, because we can’t wait until March to make these critical decisions about cutting spending and readjusting our budget,” said CFO Sink.

And if lawmakers are called on to balance the budget health care and education could face the biggest cuts.

Educators say they can’t afford anymore cuts. Others say nothing is off the table.

Closing sales tax loopholes or raising the cigarette tax could generate enough revenue to fill the void. But those changes would have to get past the Republican led legislature; then the governor.

“Taxes aren’t something I’m very warm and fuzzy about,” said Governor Charlie Crist.

But with the deficit staring the state in the face there’s nothing warm and fuzzy, about the hard decisions that will have to be made.