Budget Director Downplays Revenue Projections

The State Budget Director believes the more than five percent growth in state revenues shown so far this year are not what the state will end up having. Linda Luebbering says legislators did not take into account the federal tax cuts passed last Spring, which she believes will cut into state revenues because state tax deductions follow the federal ones. Luebbering says that puts the actual growth of revenues probably closer to only about one percent, although she says they’re working to get a more exact figure. And, it’s why she uses the more conservative gross tax collections when talking about this year’s revenue projections. Luebbering does say net revenue collections are still the numbers budget planners should use. Luebbering says she hopes to have more solid figures on what the federal tax cuts have done to state revenues next month. A $95-Million federal payment last month was to help the state with any losses the it would incur because of the federal tax cut.