The state Council on Revenues today increased the state’s general-fund revenue forecast to 3 percent, up from 2 percent, for the fiscal year that ends in June.
The new forecast estimates that the state will have an additional $44 million in tax revenue in the next six months. The Abercrombie administration has projected a $71 million deficit for the fiscal year, so the new forecast could reduce the gap.
The council left the forecast at 10 percent for fiscal year 2012 and six percent for fiscal year 2013. The administration has projected a $772 million deficit over the two-year budget cycle. The higher revenue expected this fiscal year raises the revenue base for the following two years, so the deficit would likely be reduced.
Gov. Neil Abercrombie and state lawmakers will deal with the deficit for this fiscal year and draft the two-year budget during the session of the state Legislature that starts in January.
The council’s forecasts are used by the governor and lawmakers when drafting the state budget.