January 13, 2006

State Tax Revenues are Up...Yet Again

Really no surprises, but state tax revenues are above budget estimates yet again. This news comes just in time for the legislature to come into session and spend as much of it as they can.

December revenues beat budget estimates by $27.9 million, but that includes $10 million in one-time tax payments by two taxpayers. Basicially, revenue beat estimates by $17.9 million if you don't count the one-time tax payments (which in the end really doesn't matter to the spenders).

Year-to-date tax collections for five months (fiscal year) were $62.8 million more than the budget estimates. The general fund was overcollected by $56 million and the four other funds (highway, city & county, sinking and earmarked funds) were overcollected by $6.8 million.

In the end, stories about the state losing revenue really don't hold any water when you actually look at the numbers.

Comments:

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But you're missing the expense side. I'm sure they overspent if they overcollected.

Posted by: SayUncle at January 13, 2006 11:56 AM

Of course. The obvious point is that when the state government is complaining about not having enough money, the evidence clearly shows that there isn't a revenue problem at all...it's a spending problem.

Posted by: Blake at January 13, 2006 12:00 PM

I agree. But I tend to doubt they have a huge surplus.

Posted by: SayUncle at January 13, 2006 12:23 PM

No doubt. They always spend it!

Posted by: Blake at January 13, 2006 12:24 PM