A state board revised down estimates on tax revenues for this year and the next, projecting that Maryland would be tens of millions short both years mostly on expectations that income tax receipts will be off.
Maryland's Board of Revenue Estimates projected that state tax collections for FY 2012 -- the current budget year -- will be $80 million short than expected. The board believes the state will be $50 million short next year.
State Comptroller Peter Franchot said in a statement that the revised estimates are "not surprising."
"Across the state, families and businesses know that the Maryland economy remains exceedingly fragile," Franchot said. "They know that growth will remain modest at best for the foreseeable future and they know that for too many people, the promise of an 'economic recovery' is speculative if not far-fetched."
The Board of Revenue Estimates is estimating that individual income taxes will be down $101 million this year and $107 million next year. The reductions from income taxes are expected to be softened by projected increases from corporate income taxes, with the state expecting $21 million more this year and $27 million more next year.
Franchot reiterated his view that the state should not "reach deeper into the pockets of consumers" in any attempt to fix the projected budget holes. Gov. Martin O'Malley has proposed increasing income taxes for the top 20 percent; the House and Senate are debating different plans that would also increase income taxes.
In December, the last time the board issued numbers, it also revised down expected tax receipts.