In conjunction with IHS Global Insight, the Senate Finance Committee reviewed and analyzed the economic and revenue projections contained within the Executive Budget for FY 2019.
Based upon IHS Global Insight’s February economic forecast, the Senate Finance Committee projects All Funds tax revenues to be $817.2 million above the Executive for FY 2019. This amount is enhanced by the estimate of tax revenues for the remainder of the FY 2018, which is $654.2 million above the Executive estimate. This results in a two year All Funds tax revenue forecast that is $1.471 billion above the Executive projection.
The Senate Finance Committee projects $976 million in General Fund revenues (inclusive of miscellaneous receipts and transfers) above the Executive Budget forecast for FY 2019. This amount is enhanced by the estimate for the remainder of FY 2018, which is $683 million above the Executive estimate.
All signs are pointing to strong economic growth in 2018 due to numerous factors including consumer spending and residential and non-residential investment. Consumer spending is growing at a good pace due to continued wage, disposable income, and employment growth; and the increased consumer confidence resulting from both the recently enacted Federal tax reductions and market performance.