The Revenue Interim Committee met Nov. 19 to adopt a revenue estimate for FY 2021 and the 2023 Biennium. The revenue estimate, which will be introduced as House Joint Resolution 2, is an estimate of general fund revenue and selected nongeneral fund revenue. Revenues are estimated by revenue source, and significant assumptions are also included in the estimate. The revenue estimate is used for ensuring the budget is balanced, which is a constitutional requirement, and for preparation of fiscal notes.
The committee received independent estimates from the Legislative Fiscal Division and the Governor’s Office of Budget and Program Planning. Following the presentations, the committee adopted the Legislative Fiscal Division estimate with downward adjustments to the individual income tax, lottery profits, and liquor profits. This adjustment lowered the Legislative Fiscal Division estimate by $102.3 million over the 3-year period.
The adopted general fund revenue estimates are $2,469,233,000 for FY 2021, $2,537,695,000 for FY 2022, and $2,647,666,000 for FY 2023. State law requires the estimate to be prepared by Dec. 1. The estimate will be posted online after drafting is complete.
In addition to adopting the revenue estimate, the committee also received a required report from the Department of Revenue on tax rates for residential, commercial, and agricultural property that will result in taxable value neutrality among those property classes.
The November meeting was the committee’s final meeting of the 2019-2020 interim. Legislation requested by the committee and final reports for the committee’s tax credit review and HJ 35 tax study are available on the committee website.
Questions about the work of the committee may be directed to committee staff Megan Moore at email@example.com or 406-444-4496.
The Legislative News.