Revenue estimating involves the development of national estimates of economic activity.
These national estimates are translated into a forecast of state economic activity. The state economic forecast is then used to derive estimates of the state s revenues for the next biennium. Several statistical methods are employed to project General Revenue Fund receipts. For the major tax sources, such as the Sales Tax, the Personal Income Tax, and the Corporate Franchise Tax, regression analysis and simulation models are used. Regression analysis uses mathematical equations, which have proved to be accurate in projecting tax revenues in the past.