Discussion About General Fund Revenue Estimate
SENATE COMMITTEE ON FINANCE
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02:15 PM -- Discussion About General Fund Revenue Estimate
The committee reconvened.
Mr. Todd Herreid, Legislative Council Staff (LCS), addressed comments and questions by the committee regarding the revenue resolution and the LCS December 2008 forecast.
Mr. Herreid explained that the resolution is meant to provide guidance to the General Assembly and the Joint Budget Committee (JBC) and that the JBC will review the March 2009 forecast before the Long Bill for FY 2009-1010 is completed. Mr. Herreid responded to questions from committee, including about what number the General Assembly should use and the law requiring the resolution. He noted that the JBC is not under any obligation to use LCS data and it can use OSPB's data.
Mr. Herreid responded to questions about whether the December forecast is too optimistic and stated that LCS may release a forecast update memo in February to give the General Assembly a sense of how the revenue compares to the December forecast. He also responded to questions about corporate income tax revenue and quarterly tax filings. Mr. Herreid further noted that if the forecast changes, the JBC will have to revise the Long Bill accordingly.
Discussion ensued about whether the General Assembly has ever amended a projected revenue estimate for the General Fund from an economic forecast. Mr. Herreid said the December 2008 forecast noted a 7 percent decline in General Fund revenue and LCS is projecting flat revenue growth for the rest of the fiscal year.
The committee raised questions about the differences between the forecast by OSPB and the estimates from LCS, and also discussed cash fund revenue.
The committee adjourned.