State Revenue Climbs, Surpassing Estimates
September 28, 2017
Department of Finance issued its preliminary cash flow report for the month of August and it delivers good news with each of the state’s three biggest revenue sources beating 2017-18 Budget expectations. Leading the pack is the personal income tax which brought in $109 million in unanticipated revenues (2.1 percent higher than estimated), closely followed by sales tax which brought in $108 million in unanticipated revenues (5.7 percent higher than estimated).
Due to the extra income tax revenues, the amount transferred to Mental Health Services Fund (MHSF) for August was $2 million higher than the forecast of $91 million, which is positive news for county mental health programs.
Bigger picture, August’s positive performance paired with July’s positive performance puts total fiscal year-to-date revenues at $15 billion which is $476 million (or 3.3 percent) above budget projections. Additionally, revenues are approximately $800 million higher compared to this same time last year.
Despite the overall positive revenue news, job growth has slowed statewide and labor market conditions are not at their prime, reminding observers that a lot can happen to the economy between now and the release of the proposed 2018-19 Budget in January.