State Revenues Come in Below Projections

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State revenues are more than $65 million below forecast for the first two months of the fiscal year. The state budget agency says without the redirection of sales tax collections, as outlined in the current state budget, overall revenues would have been close to the target in the April forecast. You can view the August report by clicking here.

September 6, 2013

Revenue Report Commentary From State Budget Agency

State general fund revenues were $951.2 million, $51.2 million (5.1%) below the target based on the most recent forecast updated on April 16, 2013.

-Absent the redirection of sales tax under HEA 1001-2013, total collections would have been $957.0 million, $45.4 million (4.7%) below the forecast target. Sales tax collections overall were $17.5 million below forecast, but $13.3 million above collections for August

2012.

-Individual income tax collections totaled $305.5 million for the month, $42.9 million (12.3%) below forecast and $3.3 million (1.1%) below collections for the same month last year.

-Corporate income tax collections were $8.8 million above forecast and 36.1% above collections for the same month last year.

- Gaming revenues were $1.9 million (7.2%) above target.

Commentary

Through the first two months of FY 2014, state general fund revenues were $65.5 million below target based on the most recent revenue forecast updated on April 16, 2013. State general fund revenues were 3.3% lower than in the first two months of FY 2013.

HEA 1001–2013 redirected 1% of sales tax collections to the motor vehicle highway fund thereby reducing general fund collections by $11.7 million for the first two months. Absent that change, sales tax collections would have increased by 3.4% over the same period last year.

The April 2013 forecast projected sales tax collections to grow by 3.9% for the year.

Individual income tax was $42.9 million below target for the month and $3.3 million below August 2012 collections. A transfer of $19.7 million to the LOIT reserve fund in August 2013 (there was no transfer in August 2012) resulted in a year-over-year reduction in individual

income tax revenue. Without this transfer, August 2013 individual income tax revenue to the state general fund would have increased $16.4 million above August 2012. The $19.7 million

transfer was made in accordance with the December 2012 revenue forecast. So far this fiscal year, $39.5 million has been transferred to the LOIT reserve fund.

Through the first two months of FY 2014, corporate income tax collections were $14.2 million (46.7%) above the forecast target and 2.5% above the same period last year.

Source: State Budget Agency