REGIONAL ECONOMIC MODELS INC.

DR. MARK D’AMATOSENIOR ECONOMIST

Bridging Budget GapsModeling our Way to Fiscal

Solvency

Dual Crisis – Fiscal

42 states have budget shortfalls, FY2012

Source: Center for Budget and Policy Priorities (CBPP)

Dual Crisis – Economic

Source: Bureau of Labor Statistics (BLS)

Balancing the Checkbook

What is the long-term fiscal and economic impact of…

…Changing tax rates?…Broadening tax base?…Phasing out income tax and offsetting revenue losses

with sales tax increase?…Cutting budget 10%?

Size of DEMO Economy

Total Employment = 3049.946 (thous)Total Population = 5091.161 (thous)Total Estimated Revenue 2011 = 6312.192

(mil)