IFO Estimates Show FY 2019-20 Revenue Down $1.6 Billion Below Estimates Due To COVID-19 Mitigation Measures

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.

Click Here for the IFO presentationClick Here for the full report.

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.

Related Articles:

5 Month FY 2020-21 Budget Bills Now Law, Hard Decisions Deferred Until After Nov. 3 Election

-- House Republicans Pass Bill To Freeze Funding For County Conservation Districts, Local Parks, Farm Conservation, Watershed Restoration Projects; Will Hurt Local Economies

-- House Republicans Report Out Bill To Reallocate Keystone Fund That Threatens Vitality Of PA’s Outdoor Economy At A Critical Time For Small Businesses

-- Analysis: Where Did The $2.93 Billion In Environmental Funding The General Assembly Diverted Or Cut Go?

-- Analysis: 2020 Is A Make Or Break Year For Environmental Funding

-- PA Supreme Court Grants PA Environmental Defense Foundation Request For Oral Argument In Challenge To State Forest Drilling Revenue Transfers

-- Op-Ed: State Government Is Ignoring Pennsylvania’s Constitutional Right To A Clean Environment For Generations Yet To Come - Ron Evans, PA Environmental Defense Foundation

-- New PEC Podcast: Fmr Gov. Tom Ridge On Conservatives Being Out Of Touch On The Environment

-- Op-Ed: My Fellow Conservatives Are Out Of Touch On The Environment - Fmr. Gov. Tom Ridge

[Posted: May 26, 2020]


6/1/2020

Go To Preceding Article     Go To Next Article

Return to This PA Environment Digest's Main Page