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You are here: Home / News / Top officials say state budget deficit is “wake-up call”

Top officials say state budget deficit is “wake-up call”

December 5, 2017 By Bill Werner

A “wake-up call” is what top officials term the latest economic forecast showing the first projected state budget deficit in four years.  Economists say the outlook for U-S economic growth has weakened, along with wage growth, plus it’s uncertain what changes Congress will make to tax laws. State Management and Budget Commissioner Myron Frans says, “The status of federal fiscal and budget policy remain uncertain. The risk that our current economic expansion will come to an end is real. We must always remember how quickly surpluses can turn to deficits.”  Officials say in addition to tax revenues forecast to be less than expected earlier, spending will likely be higher in nearly all areas of the state budget, most notably for special education.

 

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