On May 26, the Independent Fiscal Office released its latest revenue projections showing the FY 2019-20 General Fund revenue estimate is now $31.8 billion or $3.7 billion below the IFO's estimate in June of last year of $35.518 billion.
The enacted FY 2019-20 General Fund budget totaled $33.997 billion.
$2.1 billion of the FY 2019-20 reduction is the result of the shift of tax payment deadlines to July 15 which means a net decrease of about $1.6 billion due to COVID-19 mitigation measures.
The major factors leading to decreased revenue for FY 2019-20 include-
-- Personal Income Tax is $1.9 billion below earlier IFO estimates;
-- Corporate Net Income Revenue is $760 million lower than the earlier estimates;
-- Sales Tax is $974 million less than earlier estimates; and
-- Gross Receipts Tax is $89 million lower than earlier estimates.
For FY 2020-21, the initial estimate is $36.1 billion, an increase of $4.3 billion over the current fiscal year.
On April 8, the IFO projected a $2.7 to $3.9 billion reduction in revenues for the current and next year as a result of the COVID-19 shutdown. Read more here.
[Posted: May 26, 2020] PA Environment Digest
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