As the 2011 fiscal year begins on July 1st, Georgia may be facing a continuing set of budget challenges that might total as much as 10% as the year progresses.

Georgia, like many states, built in a large Federal Medicaid payment that Congress hadn`t passed. Now the future of that payment is in question. The budget assumes that Georgia will recieve over $300 million.

The budget also assumes that the state`s tax revenue will grow by $700 million. If the economy remains flat, taxes will probably not grow by nearly that amount.

Even worse, if the economy experiences a `double dip` recession, tax revenues may continue to plunge.

The worst case scenario might result in the state having $1.7 billion or more less than the budget writers expected.

Coosa Valley News