Here's a news item from the Associated Press: BOISE, Idaho (AP) — Idaho released new economic and tax revenue forecasts, but state officials say there's no telling if these numbers will weather the test of time, especially given this week's stock-market turbulence that followed a downgrade of the nation's debt rating. Thursday's forecasts includes good and bad news. For instance, tax revenue for fiscal year 2012 is now expected to be $80 million more than a previous estimate. Meanwhile, economic growth forecasts were slightly downgraded, even though Idaho's economy is still expected to expand through 2014. Given these mixed signals, Gov. C.L. “Butch” Otter's budget chief, Wayne Hammon, says there's ample reason for caution amid Wall Street turmoil and the shaky finances of European governments. Case in point: Moody's Investors Services told Hammon Wednesday the likelihood of a double-dip recession is growing.
You can read the state's new economic forecast here and the monthly general fund revenue report here, which shows that July revenues came in two-tenths of a percent below forecast, but 5.3 percent above last July's figure.
Betsy Z. Russell covers Idaho news from The Spokesman-Review's bureau in Boise.
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