MTF President Eileen McAnneny testified last week at the Economic Roundtable convened by budget writers to help them determine the size of the revenue shortfall for FY2021. The state has been operating on an interim budget since the start of the fiscal year on July 1. Last week’s roundtable was convened so that economists could present current information and help lawmakers determine a revised consensus revenue figure upon which to build the final budget.
MTF projected that FY2021 tax revenues will fall by $3.9 billion or 12.5 percent from the FY2021 January benchmark of $31.15 billion upon which the governor’s budget was based. MTF is projecting tax revenues of $27.27 billion in FY2021.
McAnneny said, “While our revised tax revenue forecast has improved since MTF’s April projection, the improvement is due largely to unprecedented levels of federal financial assistance. Numerous headwinds could slow the pace of economic recovery.”