On late Friday, a consensus revenue forecast by the Fiscal Research Division and the Office of State Budget and Management was released which identifies a current year revenue shortfall of $445 million. Next year, revenue is anticipated to be $191 million below projections. These revisions mean policymakers will have to make immediate adjustments to the current fiscal year budget when they return next week as well as plan for fewer dollars than expected in the next year fiscal year as well.
While policymakers address the immediate challenge, they also should assess the damage of the tax plan passed last year which is now, and will continue to be, a primary driver of revenue shortfalls. Read More