Current as of December 18, 2009
Given the unexpectedly deep appropriation reduction of earlier this week, I wanted to take the opportunity to provide a postscript regarding the Board of Economic Advisers’ latest revenue report.
Economists said yesterday that November revenues increased a bit over last year, though overall annual revenues continue to trail last year’s.
BEA chairman John Rainey said the trend line is “at best flat," while another analyst said the economy is “moving sideways.”
While those reports are not what we would all like to hear, they at least are not the type that caused the BEA to lower its revenue estimate for this fiscal year yet again. (It was such an action from the BEA last month that prompted the Budget and Control Board to adopt an across-the-board appropriation reduction earlier this week.)
We expect no further budget news for the remainder of this month/year, but will be watching in January to see how the holiday shopping season tax receipts impact the overall revenue outlook. We will update you at that time.