Rising
Revenues All But Wipe Out Budget Shortfall
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The state's budget
shortfall eased a great deal last month when
surging individual income tax collections wiped
out what had been a roughly $300 million deficit.
According to data provided to NCCBI by the State
Controller's Office, the state budget through 11
months of the fiscal year is now within two-tenths
of one percent of being on target for the year.
At the end of May the budget was projected to
have realized total tax and non-tax revenues of
$12.03 billion. Actual collections through the
end of the month reached $12.05 billion, a
shortfall of just over $19 million. At the end of
April that deficit was about $300 million.
The reason for the all-but-disappearing budget shortfall was that individual income tax collections for
May amounted to $591.9 million, whereas
collections of $387.2 million had been projected.
That's a positive swing of $204.7 million for the
month.
Corporate income tax collections and sales taxes
also were more than projected. The budget
anticipated sales tax collections of $270.8
million for the month of May but a total of
$305.3 million actually was collected, a positive
difference of $34.5 million. Corporate income
taxes were $5.6 million more than expected. Also,
franchise taxes are beginning to rebound to
projected levels. For the month of May,
franchises taxes amounted to $37.1 million
whereas $18.1 million was budgeted, a positive
difference of $19.0 million. Through 11 months,
however, franchise taxes remain $91.9 million
less than expected.
Through 11 months of this year, corporate income
taxes have amounted to $1,012.4 million. That
compares to $915.8 million through 11 months of
the previous fiscal year.
Similarly, individual income taxes are well ahead
of last year. Through 11 months, individual
income tax collections have amounted to $6,692.7
million compared to $6,221.7 million at this
point last fiscal year.
Bottom line, total tax and non-tax revenues
flowing into the General Fund now stand at 99.8
percent of budget projections.
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