State coffers made up some lost ground in March, according to the latest monthly revenue report from Secretary of Administration Jeb Spaulding.
The General Fund especially benefited from income tax collections. Lower than expected revenue in the Transportation and Education funds weighs down overall performance, however.
“We will have a good idea of how the fiscal year 2014 will finish up revenue-wise in a month,” Spaulding said in a news release. “April collections always make or break the year for state revenue collections.”
Personal income tax collections came in almost 50 percent higher than anticipated in March: $28 million instead of $19 million. Corporate income taxes also came in more than 13 percent higher: $22 million instead of about $20 million.
The padding helped rebalance fiscal-year-to-date projections on which the state budget is based. The strong performance made up for lackluster collections from other sources.
The grand total for the state’s three major funds is running in the black, with just $130,000 to spare.
State economists have cautioned budget writers that the new structure for gasoline taxes renders collections more volatile. Gas and diesel taxes are now based on fluctuating prices, rather than a fixed amount per gallon. This could explain some of the 20 percent shortfall in gas tax receipts in March. However, motor vehicle purchase and use fees and other motor vehicle fees also came in low.
“Since the weakness in the T-Fund for the month was roughly across the board,” Spaulding said, “it will be important to review April receipts before expressing any concern about the achievability of the fiscal year 2014 revenue forecast goal.”
Many revenue streams are funneled into more than one fund, so low numbers from a single source can cast multiple shadows. For example, motor vehicle purchase and use revenue is funneled into the Transportation and Education funds. Likewise, the sales and use tax goes to the General and Education funds. Both streams delivered 8 percent to 9 percent less than expected in March.
“Consumption tax receipts, including sales, rooms and meals and fuel taxes were a little off for the month, but that mainly reflects February activity and we may well see better than projected performance in this month’s receipts, due to the snowy March,” Spaulding said. “Overall, we are pleased to be ahead of target by $5 million for the year, though we do recognize that is just ½ of 1 percent ahead.”
March closed the third quarter of the 2014 fiscal year, which ends June 30.
