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Economists see rise
in state revenue

Associated Press

The state Council on Revenues projects that the state will take in $90 million more this fiscal year than previously expected.

The panel of economists voted yesterday to revise its March forecast for no growth in the fiscal year that ends June 30 to 3 percent growth.

The forecast must be followed by the Legislature and governor to keep the state's $6.2 billion annual budget balanced as required by the state Constitution.

The revised forecast is based on several things, including the fact that tax revenues are already running 2.5 percent ahead of last year.

Chairman Michael Sklarz predicted the change following the panel's workshop last week.

Key factors include increased visitor spending, job growth, increased personal income, more construction and some inflation, he said.

Council members also pointed to capital gains through stock investments and real estate and people seeing their equity portfolios increasing, leading to greater consumer confidence.

Gov. Ben Cayetano said an increase in the revenue forecast means the state could consider pay increases for public employees, but only after needed social programs are funded.

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