Members of the Economic Forecasting Advisory Board offered a cautiously optimistic view of the economy at their meeting on Thursday. Board members say housing construction has remained strong in many parts of the state, and the farm economy is holding. But they raised concerns about interest rates.
The board raised its certified revenue forecast by $46 million for the current fiscal year. If that prediction holds true, that amount will automatically go into the state’s cash reserve in July 2014.
Lawmakers rely on the projections when writing and adjusting the state budget. Michael Calvert, the Legislature’s fiscal analyst, says the projected growth rate is slightly below the long-term average of about 5 percent per year.