IFO: Pa. revenue picture has improved by $300M
The state revenue picture just got a little better — about $300 million — in the official estimate from the Independent Fiscal Office.
The IFO said Monday that estimates for the current and next fiscal year have increased by $153 million and $147 million, respectively, from its initial May estimate. That preliminary report showed a $520 million shortfall between IFO projections and the governor’s budget proposal in February.
The higher estimates largely are the result of better-than-expected tax collections in the current fiscal year.
The official estimate, which comes as lawmakers are working to get a 2013-14 budget done, expects general fund revenue for this year to be $28.7 billion, an increase of 3.8 percent over the prior fiscal year.
The 2013-14 fiscal year is projected to net revenue of $29.1 billion, which is based on sustained, but modest economic growth. The projection does not include the impact of proposed changes to statute.
“The economy continues to expand, but it faces headwinds as consumers adapt to the expiration of the payroll tax cut and as the automatic spending cuts from the federal sequester are implemented,” said Matthew Knittel, IFO director. “Prospects for stronger growth improve toward the end of 2013 and into 2014.”