As city officials who attended the state budget session at City Action Days heard in a preview from Chief Economist Dave Reich and OFM Director David Schumacher, the Economic and Revenue Forecast Council will adopt the updated state revenue forecast on February 14. The overall change in the forecast is expected to be minimal given the continued pressures of high interest rates on the revenues related to the real estate market—like REET and sales tax from new construction—lower inflation, and modest growth in personal income since the November forecast.

After the forecast is updated, proposed supplemental budgets from the House and Senate fiscal committees will begin to be released. These proposals will be some of the last bills passed before the session adjourns on March 7.

City budget priorities are included in the budget letter AWC sent to budget leaders in the Legislature last month. We encourage cities to communicate about them with your legislators.

Date to remember

The Economic & Revenue Forecast Council will meet to adopt the state revenue forecast on Wednesday, February 14 at 11 am.