State Ends Fiscal Year with Lackluster Revenues
July 20, 2017
The Department of Finance recently released a new edition of its Finance Bulletin with a report on General Fund revenues up until the end of June. Unfortunately, overall revenue performance for the month of June was lackluster with personal income, corporation, and insurance taxes all tracking below the latest Budget Act forecast. Big picture, this brings total General Fund preliminary revenues $65 million below forecast for the 2016-17 fiscal year. This accounts for a 0.1 percent difference between actual revenues and forecasted revenues.
It is important to note that the month of June did not bring all bad news. For example, sales tax revenues continue to beat expectations. For June, they’re up $60 million which brings year-to-date revenues $193 million above forecast, or 0.8 percent. Additionally, the real estate market remains strong with home prices and selling activity both continuing to increase.
CSAC will continue to provide monthly revenue updates as the state opens the next chapter on the 2017-18 fiscal year. Please don’t hesitate to contact Dorothy Johnson or Tracy Sullivan with any questions.