Can DSS improve state government tax revenue projections?
In the United States, state governments forecast tax revenues, prepare spending budgets based on the forecast, and then track and monitor tax receipts and expenditures. This past year has been especially difficult for the forecasters. Here in Iowa we have experienced major tax revenue shortfalls. Rather than raising taxes to meet budgeted needs, our state legislature has cut budgets. This Ask Dan! briefly examines why state tax revenue projections are so “bad” this year, the revenue estimating decision process, and then the role, if any, DSS play and could play in tax revenue projections. Web resources have been invaluable for collecting information for this Ask Dan!, but I would welcome comments from those with “first hand” knowledge of using DSS in revenue estimating. People in many states in the United States are asking why state tax revenue projections are so “bad”. One reads many explanations. The shortfall is caused by the national recession. The terrorist attacks have reduced co
