State Budget Forecast Questions Need for New Taxes

Although the long term look could show signs of a recession after 2020, and the state's economy slowing, for now budget experts say there will be significantly more incoming revenue than what's expected to be set aside for the next budget.

According to Chief Economist Steve Lerch, it's expected budget writers and legislators will be able to work with about $51 billion dollars for the next two-year budget cycle that starts July 1st.

With current state spending at $44 billion, GOP leaders say there isn't a pressing need for more or new taxes. However, the Democratic House Appropriations Committee chair has said this week his caucus will be seeking to find ways to pursue tax increases to fund their operating budget. It's expected to be released next Monday.

GOP leaders, including Rep. Ed Orcutt who represents the 20th District on the West side, says such taxes would have a "chilling" effect on the state's economy, and speed up any possible future recession. He and other legislators say they need to balance the state's recent growth by NOT adding more or new taxes, to allow that growth to continue.