Post by Baro on Apr 20, 2009 15:42:09 GMT -5
Budget Barometer
Latest budget forecast not as bleak as anticipated
On Friday, the State Revenue Forecast Committee updated revenue projections for the remainder of Fiscal Year (FY) 2009, in addition to FY 2010 and FY 2011. The updated forecast reduced projected revenues by $831.4 million over the 27-month period. FY 2009 revenues are expected to be 4.8 percent less than FY 2008 revenues, and FY 2010 revenues are expected to decline compared with FY 2009 revenues. Since the budget was passed in April 2007, projected revenues have fallen by more than $1 billion for FY 2009 alone.
While revenue collections missed targets by approximately $75 million per month from December through March, the forecast predicts that collections will only miss targets by roughly $14 million per month from April through June.
Budget Director Christopher A. Ruhl made the following statement upon release of the updated forecast: "The prediction of a sudden, near-term improvement in the revenue trend seems way too good to be true. We hope it will happen, but the facts make it highly doubtful. The governor believes that it's better to be cautious than to bet on a miracle."
The administration continues to review cost savings measures to ensure that Indiana remains fiscally strong. The Indiana General Assembly has until April 29 to pass a budget for the upcoming biennium.
Latest budget forecast not as bleak as anticipated
On Friday, the State Revenue Forecast Committee updated revenue projections for the remainder of Fiscal Year (FY) 2009, in addition to FY 2010 and FY 2011. The updated forecast reduced projected revenues by $831.4 million over the 27-month period. FY 2009 revenues are expected to be 4.8 percent less than FY 2008 revenues, and FY 2010 revenues are expected to decline compared with FY 2009 revenues. Since the budget was passed in April 2007, projected revenues have fallen by more than $1 billion for FY 2009 alone.
While revenue collections missed targets by approximately $75 million per month from December through March, the forecast predicts that collections will only miss targets by roughly $14 million per month from April through June.
Budget Director Christopher A. Ruhl made the following statement upon release of the updated forecast: "The prediction of a sudden, near-term improvement in the revenue trend seems way too good to be true. We hope it will happen, but the facts make it highly doubtful. The governor believes that it's better to be cautious than to bet on a miracle."
The administration continues to review cost savings measures to ensure that Indiana remains fiscally strong. The Indiana General Assembly has until April 29 to pass a budget for the upcoming biennium.