IFO projects deficit of up to $1.8 billion as fiscal year closes
When the 2019-20 fiscal year closes on June 30 and legislators face the deadline for a new state budget, Pennsylvania could be facing a loss of tax revenue of up to $1.8 billion due to shutdowns related the COVID-19 crisis, according to a new analysis released recently by the Independent Fiscal Office (IFO). A preview of estimates for fiscal year 2020-21 shows a revenue loss of up to $3.9 billion.
The projected deficits will greatly impact the tough decisions that will have to be made as the governor and the General Assembly craft the 2020-21 state budget. It is unknown whether the governor will revise the budget requests he made in February, or how the loss of state funds will drive budget negotiations.
To learn more about the IFO’s analysis and what it could mean for Pennsylvania, read PSBA’s April 9 Legislative Report.