Maryland board predicts two percent cut in projected revenue – Capital News Service
The Maryland Board of Revenue Estimates announced Wednesday that revenues for the current fiscal year are expected to be $365 million less than predicted in March.
This is largely due to the state receiving less individual income tax revenue than the board had predicted.
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Revenue estimates for the current, 2017 fiscal year follow a $253 million shortfall in projections from the previous fiscal year, which ended June 30.
The board’s new projections assume 2.7 percent growth in revenues over the last fiscal year, and project 3.4 percent more income for the 2018 fiscal year, which begins in July.
These projections are unrealistic without budgeting money correctly, said Kali Schumitz, a spokeswoman for the Maryland Center on Economic Policy.
“Unless the state makes investments in things that will grow our economy – like improving our schools, roads, and transit networks – continuing to expect state revenues to grow 3 or 4 percent a year may be too optimistic,” Schumitz said in a statement.
