Falling gasoline prices have helped to boost sales and tax revenues to the state, the state’s chief economist reported today.
As a result, economist Steve Lerch reported that the state can expect $140 million in additional tax revenues in the next two-year state budget, which begins in July. The forecast is up from what the state expected last November, when it made its last revenue projection. The revenue increase is considered modest because the state general fund is about $33 billion.
Legislators preparing to adopt the budget this session disagree as to whether they will need to increases taxes to address a projected $2 billion revenue shortfall heading toward the 2015-17 biennial budget.