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Council Member Brannan questions OMB Director Jiha on tax revenue forecasts
0:57:38
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134 sec
Council Member Justin Brannan inquires about the significant increase in tax revenue forecasts for FY '25, particularly the $1.7 billion increase in the executive plan. OMB Director Jacques Jiha explains that record profits in 2024 led to higher bonus payments and increased tax revenues. Jiha indicates that current projections seem on target, with a slight overestimation in property tax forecasts.
- The personal income tax forecast was increased by over $800 million.
- Jiha mentions that June is a crucial month for business taxes and will provide more clarity on projections.
- The final property tax forecast is about $150-169 million less than anticipated in the executive budget forecast.
Justin Brannan
0:57:38
Talking about the overall tax revenue forecast.
0:57:41
FY '25 tax revenues have been coming in a lot stronger than anyone expected, including us and the council.
0:57:47
In the executive plan, OMB raised the FY tax revenue forecast by almost $1,700,000,000 More than half of that increase was driven by a PIT, the personal income tax, up over 800,000,000.
0:58:00
It's a very big adjustment.
0:58:01
Could you tell us what caused you to increase the forecast so much?
Jacques Jiha
0:58:05
As I indicated to you, Worsweed had a near record level of profit in 2024.
0:58:14
And so basically that basically drives bonus payments, drives, you know, a number of our taxes to come up higher than we initially anticipated.
Justin Brannan
0:58:31
And since you locked up forecasts, have you seen any indications that it might cause you to revise it either way, up or down?
Jacques Jiha
0:58:38
At this moment in time, no.
0:58:40
We don't anticipate to change our forecast dramatically because we believe we are on target or slightly, probably, you know, close to what we're projecting.
0:58:54
We'll continue to assess the tax revenue data as we get closer to the June because June is a big month for these business taxes and we'll get a better sense of where we'll be.
0:59:12
But as you know, the final rule came out And I believe our forecast was overstated by about like $169,000,000 or 131 hundred and 50?
0:59:30
By about $150,000,000 So I wouldn't be very aggressive in terms of property tax forecast for Nexi based on the farm work.
0:59:41
Because right now we're looking at $169,000,000 50 9 million dollars less than we had anticipated in the executive budget forecast.