State Writes Down Revenues By $115 Million

Today the Board of Revenue Estimates has adjusted its official forecast for state revenues, showing a $115 million reduction in expected yields from FY 13 and FY 14. Of that amount, nearly $77 million is attributable to expected declines in the current year.

See the online summary of the revised figures.

From a statement by Comptroller Peter Franchot:

For starters, the expiration of the payroll tax holiday has delivered quite a noticeable blow to workers’ paychecks and coupled with escalating gas prices that have reached $4 a gallon in parts of our state, the working families and small businesses struggling most through these precarious economic times continue to be disproportionately affected.

This revenue write down of $115.3 million assumes that despite Congress’ inability to reach a deal by the March 1 deadline, the draconian cuts associated with sequestration will ultimately be averted and replaced by smaller, alternative cuts that will spare Maryland from the potential economic disaster that would otherwise ensue.

Michael Sanderson

Executive Director Maryland Association of Counties