State Finance Director sees trouble ahead

The Boston Globe reports that State Finance Secretary Kirwan sees the potential for so called 9C or mid year budget cuts for FY 2010 which began on July 1st. One Massachusetts website has a pretty good explanation here of what 9C cuts are and how they work.
The Globe reports,

Administration officials are monitoring tax collections this month and readying plans to reduce spending.

...

...“We are not going to make that call until Oct. 15,’’ Kirwan said.

In past economic turn downs, state revenues did not recover until well after the beginning of the recovery. Some of the biggest cuts came after the recovery had begun. The Globe also points out that the state's own rainy day fund is down to $500 million from the $2.3 billion it had two years ago.