The reductions nearly $138 million in the current fiscal year and $131.2 million in fiscal 2020 are fully attributed to volatile personal income tax returns, according to Andrew Schaufele, director of the Maryland Board of Revenue Estimates
Franchot stood by the estimate from the Board of Revenue Estimates
, which is housed in his agency, but he acknowledged the latter figure is based on assumptions that may or may not happen.
Comptroller Peter Franchot made his cautionary comments as the Board of Revenue Estimates projected one of its smallest write-downs about one-tenth of a percent in the current year in state revenue in recent years.
But there are troubling signs on the horizon, including a federal government that appears to be "working at cross purposes in terms of economic policy," according to Andrew Schaufele, director of the Board of Revenue Estimates.
Historically, the market has fluctuated significantly with business cycles, and more importantly, to a much greater degree than any other aspect of the economy," wroteAndrew Schaufele, director of the Board of Revenue Estimates."While market fundamentals and the prospect for still unrealized gains remain strong, surely in the future there will be an unpredictable correction that will reverse these good fortunes."
As a result of historic volatility, which has rankled lawmakers, the Board of Revenue Estimates now assumes no annual capital gains in its revenue estimates.