In response to a legislative request, the IFO used the dynamic REMI model to analyze a proposal that replaces school district property taxes with higher income and sales tax.
Director Knittel provided a budget and economic update to the PA Chamber of Business and Industry.
This report uses data from the U.S. Census Bureau, the Internal Revenue Service (IRS), the U.S. Bureau of Economic Analysis (BEA) and other sources to facilitate a comparison of state and local tax systems across the 50 states. The report examines (1) state and local effective tax rates across states, (2) the distribution of state and local taxes across revenue sources (e.g., income, sales and property) and (3) state debt levels.
This budget brief provides updated IFO deficit projections through FY 2029-30. Excluding new revenues proposed in the Executive Budget, the FY 2025-26 underlying structural deficit of $3.9 billion is projected to expand to $8.4 billion by FY 2029-30.
This budget brief tracks General Fund surpluses and deficits since FY 2013-14. Excluding new revenue and spending policies proposed in the Executive Budget, the underlying structural deficit is projected to expand to $6.7 billion in FY 2026-27.