State revenue estimate jumps in December forecast
Gov. John Carney and state lawmakers get an early Christmas gift - additional money for the fiscal year 2021 budget.
The Delaware Economic and Financial Advisory Council (DEFAC) bumped up revenue estimates from its last forecast in September, adding another $200 million to the state’s bottom line.
Projected increases in personal income, franchise and corporate tax revenue in both the current and coming fiscal years fueled the rosier December numbers, which give the state just over $4.96 billion to spend in 2021.
DEFAC increased its projection for personal income tax revenue by $20.2 million in Fiscial Year 2020 and and $21.1 million in FY 2021. An addtional $35.3 million is expected to come in franchise tax revenue in 2020 and another $27.3 million in 2021. And the forecast for corporate tax revenue in 2020 was raised $45.4 million and $29.4 million for 2021.
The December DEFAC revenue estimate is a cruical one. It provides the numbers Gov. Carney’s administration will use to craft its budget proposal. That proposal will be unveiled next month when lawmakers return to session.