The Revenue Estimating Conference increased income projections for this fiscal year by 350-million dollars today, giving state lawmakers additional money to spend. Economists are reporting better-than-expected tax collections from sales and personal income taxes. Chief legislative economist Deborah Vivien.
“We’re still seeing higher wages, we are seeing a workforce that’s coming back that’s willing to come back to work, not quite where it was pre-COVID, but it’s approaching it,” said Vivien.
The Revenue Estimating Conference is also increasing revenues for the fiscal year that starts July 1st by more than 100 million dollars. Viven expects spending will drop off in 2023.
“Income tax stays relatively strong, sales tax is allowed to decline, because of course, we collect that monthly it responds quicker to the economic influences,” said Vivien.
Administration economist Manfred Dix says the state is having a good year when it comes to better than expected revenues. He wonders if it could last beyond this calendar year.
“If it is a new baseline then fantastic, but if it’s an anomaly how much do we have to adjust for the future, especially for the ensuing fiscal year,” said Dix.
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