The rebound in multi-family housing permits is not expected to persist into 2001, and the total number of housing permits issued is expected to decline in each of the next two years. The state's slower economic growth will be reflected in state tax collections. After increasing a robust 8.5 percent in fiscal year 2000, growth should slow to 6.4 percent in the current fiscal year. Further slowing to gains of less than 6 percent is expected for fiscal year 2002. In short, moderation is a better situation for us since an overheated economy will surely result in higher inflation and market interest rates that will constrict normal economic activity.
Prevention is better than the cure.
The Robinson College of Business, Office of External Affairs.