Thursday, October 8, 2020

Commonwealth Magazine: "Economists offer dire projections for state revenues"

From CommonWealth Magazine we share an article of interest for Franklin:

"STATE TAX REVENUES are likely to tank by between $1.2 and $3.6 billion this year compared to last year, amid significant uncertainty generated by the COVID-19 pandemic and by federal inaction, according to the state’s top revenue official. That represents a drop of as high as 12 percent year over year.

Compared to the amount lawmakers expected to have this year, before the pandemic hit, the drop is even greater – between $2.7 and $5.2 billion less than anticipated, a drop of between 8.9 and 16.8 percent.

The projections by Revenue Commissioner Geoffrey Snyder are slightly more pessimistic, but not too far out of line with, projections made by several outside experts, who testified Wednesday during a more than three-hour hearing on state revenues.  

The projections of multi-billion–dollar revenue drops come even as revenue for the first three months of this fiscal year has come in stronger than expected. But experts say the steady revenues early in the year were due primarily to federal money – like a temporary expansion of unemployment benefits – that has been drying up."

Continue reading the article online


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