reporter: we re not talking about sales from liquor. we re talking about sales from things like pharmacies, boating stores, all retail sales are down. that s why the state is having a hard time meeting its commitments. we realize now that this is really the worst economic period since the great depression. reporter: foster and other state officials say flat sales and other reduced sources of revenue made it difficult to project what is coming into the state. just when they think their refined projections come in, it reveals another hole. this time a $300 million hole on top of the $700 million cut earlier this year and the billions cut since 2007. we re a long, long way from being out of the woods. so, yes, we re going to have another significant breakdown and yet that does mean more people, more difficult budget cuts on the horizon. reporter: what gets cut remains in the hands of the governor. in a statement governor martin o malley says he ll be asking state depar