Page 6 - CAO Overview of the Proposed 2022-23 Budget

REVENUES: CONCERNS

The Proposed Budget’s expectation for average or above average

growth from economy sensitive revenues faces risk from external

economic conditions:

• The highest inflation rates since the early 1980s could lead to

challenges:

– Inflation could impact consumer behavior, reducing spending and putting
some revenue projections at risk.

– The Federal Reserve may raise interest rates to reduce inflation, which on
several occasions in the past has led to higher unemployment and even

economic downturns.

2022-23 Proposed Budget

Presentation to the Budget and Finance Committee