State revenue fell short of expectations in November, taking hits from low-performing personal and corporate income tax streams and consumption taxes such as sales and use, and meals and rooms. Secretary of Administration Jeb Spaulding acknowledged the shortfalls in a press release.
“Though we are slightly behind projection for the month of November, we are still on target for this fiscal year and we remain solidly ahead last year’s collections,” Spaulding said. “And last year was a very strong revenue year,” he noted.
The General Fund missed its $83 million target this month by more than $3 million. About $2 million of that shortfall came in the personal income tax collections, and another $1.7 million from corporate returns. Spaulding said the significant corporate refunds had been anticipated, but they turned out to be worth more than expected.
“We continue to watch corporate closely as it provides our largest area of concern,” he said.
The insurance premium tax helped absorb the miss, delivering more than $2 million “extra” for the month.
The non-property tax components of the Education Fund were about $750,000 shy of $13.7 million projected earnings, weighed down by low sales and use and lottery transfer numbers.
In the Transportation Fund, motor vehicle purchase and use taxes helped buoy performance with about $500,000 stronger than expected returns. The gasoline tax also delivered $870,000 ahead of projections. November totals registered $840,000 above the roughly $18.5 million mark.
Despite some disappointments, Spaulding is encouraged by year-over-year performance and optimistic that the federal budget deal will help the state’s finances continue moving in the right direction.
Legislators recently heard from administration officials that a $12.53 million budget adjustment will be needed to close fiscal year 2014 in the black. Lawmakers are also looking at a roughly $75 million shortfall for fiscal year 2015.
