March Revenue Projections
On March 20, 2008, Legislative Council Chief Economist Mike Mauer presented the quarterly revenue projections for March 2008. The March revenue projections are important since they establish the amount of money appropriated through the 2008 Long Bill. The big news is a decrease in projected General Fund revenues of $169.6 million for FY 2007-08 and $148.6 million for FY 2008-09.1
The implications of these reduced General Fund estimates are most acute in transportation and capital construction. For transportation, the estimated SB-1 transfer for FY 2008-09 was reduced by $52.9 million and the HB 1310 estimated transfer declined $113 million. Total FY 2008-09 General Fund transfers to the Highway Users Tax Fund (HUTF) are now estimated to be $232 million compared to the $399 million projected in December 2007. For capital construction funding through HB-1310, the estimates fell from $72.5 million to $16 million.
The big question is whether the revenue reductions that were reflected in the March estimates were the beginning or the end of the downward revenue adjustments. Only time and the next quarterly adjustments will tell.
Released March 28, 2008