State economists just drew up new estimates that predict the state will take in about $867 million less in revenue over two years than earlier anticipated. The new forecast was drawn up Wednesday, August 14th, the same day that the stock market tanked amid worries that a recession could be looming.
Amy Baker, head of the Legislature’s Office of Economic and Demographic Research, didn’t go that far in predicting a recession but warned of signs that the state economy is slowing.
“In my mind, I think of it as winded,” Baker said. “If you’re on a marathon, and you’ve been on it for a very long time, those last few miles, you’re starting to get winded. I think that’s where we think the economy is. It’s moving into a slowing of growth.”
Economists meet periodically during the year to draw up forecasts of how much general revenue — the main building block for Florida’s nearly $91 billion budget — is expected to come into state accounts. The new forecast approved by economists trimmed estimated revenue by $451.6 million in the current fiscal year, which began July 1 and will be in effect until June 30. The economists also agreed to reduce estimated revenue for the 2020-2021 fiscal year by $416.1 million.