Slight uptick in state revenues, but caution urged

Slight uptick in state revenues, but caution urged

Comptroller Peter Franchot, center, and Treasurer Nancy Kopp listen to Andrew Schaufele, director of revenue estimates. CNS photo by Elliott Davis

By Elliott Davis
Capital News Service

The Maryland Board of Revenue Estimates voted unanimously Thursday to increase the state’s projected revenues for the current fiscal year by just under $130 million, but cautioned that the uptick “is not indicative of long-term economic growth.”

The new estimate is really a reflection of a strong tax year in 2018, Maryland Comptroller Peter Franchot noted Thursday during the board’s meeting.  Franchot, Maryland Treasurer Nancy Kopp and Budget and Management Secretary David Brinkley make up the Board of Revenue Estimates.

The board also set the first official projection for fiscal year 2021 at approximately $19.1 billion, which is a 1.9% increase over prior planning figures, said Bureau of Revenue Estimates Director Andrew Schaufele during the meeting.

Schaufele told Capital News Service after the meeting that the updated projections are a “mix of good and bad.” He pointed to the “writedown in our wage growth outlook” as a point of concern for the future.

Franchot said that three top industries — the federal government, information and financial services —  “have contracted while lower-wage industries are growing.”

“While we may be experiencing the longest-recorded period of economic growth at 122 consecutive months,” Franchot added, “the tight labor market is not generating the wage growth that it has in the past.”

Franchot noted “stronger than expected” capital gains reported last month, as well as an uptick in online sales taxes collected after a U.S. Supreme Court ruling allowed it.

Franchot also spoke of other concerns for the future of the economy, including “reckless and erratic trade policy from Washington.”

Brinkley added during the meeting that “revenue growth may not be as rosy in future fiscal years.”

Budget analysts also show that spending is increasing higher than spending due to inflation and mandated spending, creating what’s called a structural deficit.

Schaufele added after Thursday’s meeting, “To some degree, we’re living on borrowed time here.”

About The Author

Capital News Service

kdenny12@umd.edu

Capital News Service is a student-powered news organization run by the University of Maryland Philip Merrill College of Journalism. For 26 years, we have provided deeply reported, award-winning coverage of issues of import to Marylanders. With bureaus in College Park, Annapolis and Washington run by professional journalists with decades of experience, we deliver news in multiple formats via partner news organizations, a destination Web site, a nightly on-air television newscast and affiliated social media channels (including Twitter and Facebook). We provide breaking news coverage, in-depth investigative and enterprise journalism, and serve as a laboratory for students to test and develop innovative new methods of reporting and telling stories. By providing a true newsroom experience to our students, we send them into the job market with real-world skills and the ability to shape the future of journalism. Only Merrill’s most motivated students are accepted into the Capital News Service program, and they go on to land internships and jobs at the nation’s finest news organizations: The New York Times, the Washington Post, CNN, the Associated Press, Politico, the Chicago Tribune, the Los Angeles Times, ProPublica, National Geographic, NBC News, The Dallas Morning News, the Washington City Paper, Washingtonian magazine, Money magazine, the Wall Street Journal and more.

Support Our Work!

We depend on your support. A generous gift in any amount helps us continue to bring you this service.

MarylandReporter.com Podcast

Poll

Should businesses mandate Covid-19 vaccinations for employees?

Subscribe to Our Newsletter

Facebook