State revenue estimates are down $783 million over the next two years, biggest write-down since 2010 – MarylandReporter.com
By Len Lazarick
Maryland tax revenues are expected to be down $365 million this fiscal year and another $418 million in fiscal 2018, a $783 million drop in what the state can spend, eating up all this year’s projected budget surplus.
The estimate revision is the largest projected write-down since 2010, when the state was in the midst of recession recovery and the panel was off by 5%.
“These are significant reductions in our estimates, and reflect the volatility that Maryland’s economy continues to experience,” Comptroller Peter Franchot said Wednesday in Annapolis as he chaired the Board of Revenue Estimates. The board makes the official projections that both the governor and legislature must follow.
“Today’s write-down reflects the stagnant growth in our economy, which is reflected by reduced revenue generated from individual income taxes, corporate income taxes and sales and use taxes.”
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Benjamin Orr, executive director for the progressive Maryland Center on Economic Policy, said the state needs to do more for those at the lower end of the income scale.
“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.
“Further, policies like expanding the Earned Income Tax Credit, ensuring access to paid sick days, and increasing the minimum wage will help hard-working Marylanders make ends meet and put more money in their pockets to spend at local businesses, boosting the economy.”
