DOVER, Del. (AP) - A state panel has lowered Delaware’s official government revenue estimates as the coronavirus scare continues to wreak havoc with the national and state economies.
The Delaware Economic and Financial Advisory Council on Monday lowered its revenue estimate for this year by slightly more than $1 million compared to December’s estimate. The estimate for the fiscal year starting July 1 fell by more than $94 million.
The downward revisions were largely due to significant declines in estimates for personal income taxes and corporate income taxes. Estimates for the gross receipts tax on businesses also fell.
Officials indicated the revenue forecast picture, particularly for next year, likely will get worse before it gets better, given that some economists are predicting a recession and saying the outlook is “extremely uncertain.”
“There is no escaping for Delaware from what’s happening with the national economy,” said David Roose, director of research and tax policy for the state Department of Finance.
Even with Monday’s revisions, the revenue estimate for this year is still about $129 million higher than it was when lawmakers passed this year’s budget last June. The revenue estimate for next fiscal year is up $38 million over the same period.
“But obviously there are a substantial number of risks to the forecast,” Roose said.
Please read our comment policy before commenting.