Office of Legislative Services Budget Officer David Rosen told lawmakers today that despite a $1.3 billion revenue shortfall predicted through Fiscal Year 2013, revenues did not collapse this year.
“If there was an error the error was in assuming things would improve more quickly than they have,” Rosen said.
Rosen said OLS is not predicting the growth in revenue to fall below the current rate, but instead is projecting the economy will pick up in FY 2013 over its current rate of growth.
“You can argue that perhaps we should based on the fact that we are not seeing quite the growth this year that we have anticipated, but we are still hopeful,” Rosen said.
In response to questioning later in his presentation before the Assembly Budget Committee, Rosen reiterated the point that the revenue miss is not catastrophic and represents a “normal miss” inside the nationwide median for projections.
“It’s not a collapse. This is not a shocking swing. It’s a normal miss,” Rosen said.