Mr. Anderson commented that he is comfortable with essentially everything he sees with one exception- that is the net proceeds forecast for this year. He mention there are considerable differences amongst the three forecasting entities. He is wondering if it would be more prudent on our part to weigh the projection that goes to the Economic Forum more towards the two more consistent ones from Fiscal and the Budget Office. Mr. Krmpotic noted he has the same concern but does not have a real comfort level of going with higher numbers. As one who saw significant changes or variances between forecasts in the previous biennium, he is comfortable with the average of Budget, Agency and Fiscal at this point in time. Mr. Wells agreed with Mr. Krmpotic. He added, he originally had thought of throwing out the Agency number and using the average of Fiscal and Budget would make a little bit more sense. After hearing the discussion from the three people, he is actually more comfortable with the average of all three. Ms. Jones moved that the Committee accept the consensus forecast provided by the staff of the various agencies, Fiscal and Budget. Mr. Wells seconded the motion. The motion passed unanimously. Review and approval of forecasts for various tax credit programs that may be taken against certain General Fund sources for presentation to the Economic Forum at their December 6, 2016, meeting (For possible action) Mr. Guindon detailed the various tax credit programs that may be taken against certain General Fund sources for presentation to the Economic Forum at their December 6, 2016 Meeting. Mr. Wells stated, before we get to the Economic Development Credits, the New Market Tax Credits, they have a maximum amount that they could take? didn’t it like $200 million of investment and they got 58% of it. If we subtract out Wasn’t the FY and then what carrying on the books for and ’15, ’16 we’re ’17, ’18 ’19, 2020 will be the end of that tax and it will not be the whole $22 million that you see in FY it will be some number, is that correct? ’19, Mr. Guindon noted, he believe that is a correct statement because of the program operating on a calendar year basis but they operate on a fiscal year basis. He added, Mr. Nkmoto, his colleague from the Fiscal Analysis Division is telling him
Mr. Anderson commented that he is comfortable with essentially everything he sees with one exception- that is the net proceeds forecast for this year. He mention there are considerable differences amongst the three forecasting entities. He is wondering if it would be more prudent on our part to weigh the projection that goes to the Economic Forum more towards the two more consistent ones from Fiscal and the Budget Office. Mr. Krmpotic noted he has the same concern but does not have a real comfort level of going with higher numbers. As one who saw significant changes or variances between forecasts in the previous biennium, he is comfortable with the average of Budget, Agency and Fiscal at this point in time. Mr. Wells agreed with Mr. Krmpotic. He added, he originally had thought of throwing out the Agency number and using the average of Fiscal and Budget would make a little bit more sense. After hearing the discussion from the three people, he is actually more comfortable with the average of all three. Ms. Jones moved that the Committee accept the consensus forecast provided by the staff of the various agencies, Fiscal and Budget. Mr. Wells seconded the motion. The motion passed unanimously. Review and approval of forecasts for various tax credit programs that may be taken against certain General Fund sources for presentation to the Economic Forum at their December 6, 2016, meeting (For possible action) Mr. Guindon detailed the various tax credit programs that may be taken against certain General Fund sources for presentation to the Economic Forum at their December 6, 2016 Meeting. Mr. Wells stated, before we get to the Economic Development Credits, the New Market Tax Credits, didn’t they have a maximum amount that they could take? Wasn’t it like $200 million of investment and they got 58% of it. If we subtract out the FY ’15, ’16 and then what we’re carrying on the books for ’17, ’18 and ’19, 2020 will be the end of that tax and it will not be the whole $22 million that you see in FY ’19, it will be some number, is that correct? Mr. Guindon noted, he believe that is a correct statement because of the program operating on a calendar year basis but they operate on a fiscal year basis. He added, Mr. Nkmoto, his colleague from the Fiscal Analysis Division is telling him
TAC_Draft_Minutes_2016_11_29.docx