The Board of Revenue Estimates today voted to adjust its official forecast for state revenues, showing a $269 million reduction in expected yields from FY 19 and FY 20. Of that amount, $138 million is attributable to expected declines in the current year.
The writedowns are largely the result of taxpayer uncertainty and changing spending habits in the wake of the Tax Cuts and Jobs Act, passed in December 2017, that significantly revised the federal and state tax codes.
According to a statement from Comptroller Peter Franchot:
“As always, on behalf of my colleagues, Treasurer Kopp and Secretary Brinkley, I would like to start by thanking Andy Schaufele for his outstanding work in preparing this exceptional report, and I would also like to thank the entire BRE staff, along with the Revenue Monitoring Committee, for their thorough and tireless work in drawing up these estimates.
It is certainly not easy work, but your professionalism and expertise allow us to make responsible, tough decisions that strengthen our economy, ensure our long-term growth, and safeguard the people of Maryland, so I thank you for the incredible work that you do each and every day.
As Mr. Schaufele noted in his report, this Board is being asked to approve recommendations that would decrease our December 2018 revenue projections for Fiscal Year 2019 by 0.8%, or $138 million.
Additionally, we will be revising the December estimates for Fiscal Year 2020 to $18.5 billion, representing a 0.7%, or $130.5 million, decrease from our previous projections.
In total, the proposal before the Board is to decrease our December estimates by 0.7%, representing a total of $268.5 million.
Read the full press release for more information.