ANNAPOLIS, MD (December 8, 2016) – The following is a statement from Maryland Comptroller Peter Franchot released today during a meeting of the Board of Revenue Estimates in the Treasury Building in Annapolis.
“I’d like to thank my fellow members of the Board of Revenue Estimates – Treasurer Nancy Kopp and Department of Business and Economic Development Secretary David Brinkley – as well as Bureau of Revenue Estimates Director Andrew Schaufele, his staff, and the Revenue Monitoring Committee for their hard work.
“Today, Maryland’s Board of Revenue Estimates voted to reduce the revenue projections for the State of Maryland for Fiscal Years 2017 and 2018 by a total of $38.3 million, which is $13.8 million for Fiscal Year 2017 and $24.5 million for Fiscal Year 2018. These reductions underscore the reality that our economic recovery remains weak. Wages and incomes continue to grow at a subdued rate and many Marylanders and small business owners are still struggling.
“Our projections indicate that there will be three percent growth in our sales and use tax revenue for the current and the next fiscal years, which serves as a positive indicator that Marylanders are spending more. That’s not a return to normal, but it is a step in the right direction.
“Whether it’s a temporary indicator or a prolonged trend is uncertain. State policymakers can help by not doing harm to consumer confidence. We can’t assume we’re around the corner from returning to the way things have been in Maryland.
“We have to be more forward-looking about how we borrow money as a state because we can’t sustain our current patterns of debt accumulation without provoking actions that could harm an already fragile economy. But if we maintain a cautious mindset, Maryland’s economy is strong enough to withstand this slow recovery and return us to prosperity.”
Pictured above are Department of Business and Economic Development Secretary David Brinkley; Deputy Treasurer Bernadette Benik, who attended the meeting on behalf of Treasurer Nancy Kopp; Maryland Comptroller Peter Franchot, who is chairman of the Bureau of Revenue Estimates (BRE); and BRE Director Andrew Schaufele.