State approves a $255 million revenue writedown for the current fiscal year and the next fiscal year. The Maryland Board of Revenue Estimates voted today to lower State revenue projections for fiscal 2024 by $120.3 million. The Board, which consists of …
State approves a $255 million revenue writedown for the current fiscal year and the next fiscal year.
The Maryland Board of Revenue Estimates voted today to lower State revenue projections for fiscal 2024 by $120.3 million. The Board, which consists of Comptroller Brooke Lierman, Treasurer Dereck Davis, and Budget Secretary Helene Grady, also lowered revenue projections for fiscal 2025 by $134.9 million.
The three-member panel estimates revenues to assist with managing the State's budget. The forecasts for the current fiscal year and the one that begins in July 2025 provide budget writers and policymakers with the latest revenue projections and economic trends.
Source: Maryland Board of Revenue Estimates
The personal income tax forecast shows a sharp deceleration in withholding income tax revenues. The forecast report alsoalso shows a modest reduction in sales and of use tax revenues for fiscal 2024. However, there is a disconnect between the BRE's economic and revenue data, according to BRE Executive Secretary Robert Rehrmann.
As such, the forecast adopts "middle-ground" approach given uncertainty of most recent tax data and lack of slowdown in economic data. Therefore, there is significant downside risk to this forecast if withholding continues to weaken.
This slideshow requires JavaScript.
As previously reported on Conduit Street, over the next few years, lawmakers face considerable challenges budget challenges that could drive spending cuts, tax increases, or other remedies to resolve significant structural deficits projected through fiscal 2029.
Stay tuned to Conduit Street for more information.
No comments:
Post a Comment