State Revenues to Grow Slightly This Year and Next

As reported by Len Lazarick of MarylandReporter, state government revenues are expected to grow slightly for the first time in two and a half years. The Board of Revenue Estimates, which is composed of Comptroller Peter Franchot, Treasurer Nancy Kopp, and Budget Secretary Eloise Foster, “predicted fiscal 2010 revenue would be up $88 million and will grow $484 million in fiscal 2012, about 3.6%.”

Franchot, who heads the Board of Revenue Estimates, said it was “extremely important … that we do not confuse revenue stability with economic recovery.”

State Treasurer Nancy Kopp said the revenue estimates are “a lot better” than expected “because our estimates we’re very conservative.”

She hoped the governor and legislature would “act prudently” and not spend all the forecasted revenues as the Virginia legislature did, leading to new deficits when they didn’t materialize.

Comptroller Franchot also commented on highway user funds.

Franchot went out of his way to point out that the estimates include $363 million in highway user funds that were taken away from local jurisdictions to help balance the budget this year.

“This money should be returned to the highway user fund as soon as possible,” Franchot said.

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