As the state began a new fiscal year this week, we received some good news about the state budget. The fiscal year for the state budget always ends on June 30 and begins on July 1.
While general revenue for Fiscal Year 2020 was $168 million less than the year before, it was $369 million above what economic forecasters predicted in the wake of the health emergency. This means the budget outlined in the Revenue Stabilization Act for the previous year ended fully funded with $3.2 million in excess. The Department of Finance and Administration says the fiscal year ended above forecast as a result of the following:
1) Better than expected sales tax collections from retail activity and vehicle sales. 2) Individual income tax payments from filings ahead of the shifted July 15th due date
3) Reduced individual refund claims related to the shifted tax filing date
4) Continued gains in corporate income tax
However, the negative financial impact of COVID-19 was still evident in low annual growth from sales tax and payroll withholding tax. Continue Reading →