|Posted:||December 12, 2017 06:04 PM|
|From:||Representative Seth M. Grove|
|To:||All House members|
|Subject:||Joint Revenue Estimate Forecasting Committee|
|While the General Appropriations Bill may be the most important piece of legislation passed by the General Assembly, the Commonwealth still struggles to accurately predict future state revenue. A pertinent example of this fact comes from the debate around expanding gaming to include small games of chance. During the debate, it was estimated the proposal would generate $100 million in revenue, but instead realized less than $10 million.
Another example comes from the 2016 fiscal year budget as no legislative analysis or fiscal analysis from the administration anticipated the $1.5 billion difference between estimated state revenue and actual state revenue. Although forecasting economic revenue is not always an exact science, it is clear the state must do a better job accurately estimating future revenues in order to plan the following year’s budget.
To improve the state’s economic forecasting, I am introducing legislation establishing a Joint Revenue Forecasting Committee. The Committee shall consist of the following members:
Should the estimate approved by the committee have an error rate of three percent or more between estimated revenues and collected revenues, the committee shall develop a new model for forecasting revenue collections.
Please join me and co-sponsor this legislation to improve our revenue estimates upon which we base our budget. Should you have any questions please contact Jordan Grant at firstname.lastname@example.org
Introduced as HB2013