Director Matthew Knittel Wednesday released a mid-year update of the Independent Fiscal Office revenue estimate for FY 2014-15 saying the revised estimate is $30.207 billion, which is $250 million higher than the estimate published by the IFO at the beginning of the fiscal year and $26 million higher than the official estimate recertified by the governor in September.
“Lower gasoline prices drive some of the projected revenue increase.” Knittel said. “We anticipate that Pennsylvania households will save between $3.0 and $3.5 billion on gasoline purchases this fiscal year. These savings are expected to translate to higher consumer spending on goods and services, netting an additional $60 million in sales tax collections.”
Knittel cautioned that reductions in the estimates for other revenue sources offset some of the gains from the improved economic outlook.A copy of the IFO presentation is available online.