...Positive Property Tax Trends: Continued housing market recovery and growth have led to an expectation of improvement in assessed values (AV) and property tax revenues through fiscal 2017. Home price trends, as assessed by Fitch Ratings' Sustainable Home Price (SHP) model, should generally remain positive but vary by region. Other Revenues Less Predictable: Sales and other nonproperty tax revenues react more quickly to economic changes and are more difficult to project than property taxes. State aid levels are likewise influenced by economically sensitive tax performance. Fitch's most recent Global Economic Outlook projects continued growth in 2016. Pension Increases, Reporting Changes: Fitch expects contribution requirements to continue to grow but at slower rates than in recent years. The implementation of GASB 68 will change reporting of public sector pension liabilities. Local governments that participate in a cost-sharing multi- employer plan are likely to be most affected, as they...
