Revenue Projection Errors

A new report from the Pew Center states biennial budgets face the toughest challenges in being accurate. Montana has been hit by double-digit declines in energy revenue, which is tied to several categories of taxes. Study Researcher Steve Fehr says no one expects perfection in forecasting…

Fehr says Montana is not seeing as severe of a budget crisis as most states, but notes that even an underestimate of as little as one percent translates into a 36 dollar million shortfall over two years.