General fund receipts decline putting fiscal year estimates in peril
04/10/2017 09:21 PM
With a decline in revenue in March it seems likely that the state will face a budget shortfall in the coming months, the state budget director warned on Monday.
State Budget Director John Chilton reported March’s General Fund receipts fell 11.4 percent compared to March of last year, a decrease of $99.2 million. The decline in revenue year-to-year will likely mean the state will fail to meet the fiscal year estimates.
The official revenue estimate calls for 2.7 percent revenue growth for the fiscal year. To meet the estimate, receipts must grow 6.6 percent over the last three months of the fiscal year, the Office of the State Budget Director reported Monday.
“Fourth quarter collections last year grew only 0.6 percent which leaves open the possibility of strong growth for the final three months of FY17 to end the fiscal year somewhere near, yet likely below, the official estimate,” Chilton said on Monday.
Chilton said the decline in the General Fund is because of timing issues with the collection of corporate tax returns.
“We believe that the decline involves issues of administrative timing and that seems to be the case in March,” he said. “On the corporate side, the due date for federal corporate tax returns was permanently changed from March 15 until April 15, so we expect April receipts to include payments that in the past that would have been made in March.”
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