Economists Surprise Haslam With State Revenue Projections

Gov. Bill Haslam said he is surprised by revenue estimates from local economists who predict the state could expect up to 4 percent growth in the next budget cycle, reports The City Paper
In a rare appearance, Haslam joined the State Funding Board on Capitol Hill Friday to hear experts forecast tax collections used to map out next year’s roughly $31.5 billion state spending plan.
Haslam said statistics from the economists were “a little more encouraging than I was expecting, to be honest. The economy feels a little more nervous out there than what the statistics were showing.
“To me, it just doesn’t feel like we’re growing that fast when I talk to businesses out there,” he told reporters after he left the State Funding Board meeting Friday, adding that his evidence is anecdotal next to economists’ statistics.
Economics professor William Fox predicted the nearly 6 percent job growth in the construction industry is a good sign of the state’s recovery. He predicted 4 percent growth in sales tax collections, which includes a 2 percent increase in real economic growth and a 2 percent climb in inflation.

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