« | Home | »

State Revenue Likely to be Lower Due to Coronavirus

By John Forester | March 18, 2020

From WisPolitics.com …

The January projection that the state will take in an additional $818.2 million through mid-2021 will almost certainly be lower than anticipated due to COVID-19’s impact on the economy, according to the Legislative Fiscal Bureau.

LFB Director Bob Lang told WisPolitics.com that he would need to gather at least several months more of data before completing another full economic forecast report, if he decides to make one.

“I’m not going to do one every two weeks,” Lang said. “Just look at the economy and the markets. I’m certain with small businesses there will be some impact, but I’m not prepared to say what the magnitude will be.”

Lang said the bureau looks at national moderating forecasts for tax collections to help reach an estimate. He said collections from annual personal income filings will be particularly important to review.

An LFB report released in January, well before the WHO declared the virus a global pandemic, projected the state would pull in an additional $818.2 million in tax revenue for the 2019-21 biennium. That resulted in a projection of an extra $451.9 million in the general fund at the end of the current biennium and a deposit of $409.1 million into the state’s rainy day fund.

The GOP-controlled Legislature passed a bill in February that would’ve used $392.4 million of the projected surplus to cut income taxes and property taxes for manufacturers, as well as pay down $100 million in state debt.

But Evers vetoed the proposal, saying the funds should’ve instead gone towards raising K-12 education to two-thirds state funding. He had proposed a $251.9 million plan that included $130 million of the money going into education resulted in a property tax cut.

Topics: SAA Capitol Reports, SAA Capitol Reports with Email Notifications, SAA Latest Update | No Comments »

Comments are closed.