The state Economic and Revenue Forecast Council updated its forecast of general fund-state revenues today. The forecast for the 2011-13 biennium was reduced by $122 million, while the talley of revenue for 2009-11 was increased by $25 million. The net bad news was thus a reduction of $97 million. From the press release:

Our current economic forecast is very similar to our September forecast, with the same muddle-through conditions expected for the rest of the biennium, along with a high degree of downside risk. In the two months since that forecast, there have been no unpleasant surprises, despite the high level of uncertainty in the baseline. The biggest threats to the U.S. economy remains the sovereign debt crisis in southern Europe and the political gridlock in Washington D.C. that has fiscal policy sitting it out on the sidelines. This has led to a steady erosion of both consumer and business confidence.

The press release is here, while the meeting handout is here.