REC Projects Steady Growth Moving Into Future
December 19, 2019
The Revenue Estimating Conference (REC) met last week and announced the state is expected to see continued growth moving into Fiscal Year 2021. The three-person panel meets in March, October and December each year to provide estimates concerning the state’s budget. The Legislature uses these estimates when it creates the budget for the new fiscal year. The December REC is projecting tax collections of $8.015 billion for FY20, which is a 2.0% growth from FY19. This is the first time the state will have collections over $8 billion. The REC also estimated that for FY21, the state will generate $8.249 billion or 2.9% growth from FY20. By law, the governor must use the December REC for composing her budget. The Legislature will use the lower of the December REC and the March 2020 REC estimates to construct the budget next spring. Growth in the state budget’s tax receipts is important as this gives policymakers more flexibility to weigh and consider income tax reductions next session. Read more in The Gazette.