The Maryland agency that forecasts tax collections predicted Wednesday that the state will take in nearly $400 million more than previously expected this year and in 2019, giving the General Assembly and Gov. Larry Hogan some flexibility as they finalize the budget.
The Board of Revenue Estimates forecast that revenues for the current fiscal year, which ends on June 30, will actually fall nearly $40 million short of previous expectations. But the agency predicted that tax revenue for the budget year starting July 1 would come in more than $433 million higher, largely because of the impact of the recent revision of the federal tax code.
The new forecast is a stark contrast with past March estimates that brought unpleasant surprises as lawmakers scrambled to balance state budgets before adjourning in April.
Andrew Schaufele, the state’s chief forecaster, put the combined additional revenue at $394 million.