Revenue estimating conference predicts 4% growth
December 10, 2015
The Revenue Estimating Conference (REC), met Thursday to give its December estimate for state revenues. The REC predicted 4 percent growth for FY17, estimating the overall state budget to be over $7.3 billion; however, this is a $21.5 million decrease from October projected revenue growth. With built-in increases including property tax backfill, education reform and medicaid totalling over $200 million in state spending, this decreased growth will create added pressure on the state budget next legislative session.
The December meeting of the REC is particularly important, because by December 15 of each fiscal year, the conference must agree to a revenue estimate for the fiscal year beginning the following July 1. This estimate is used by the Governor in the preparation of his budget and by the General Assembly in the budget process. The General Assembly must use the lowest of the December and March REC estimates in its budgeting.