As city officials finalize budgets, the strong state revenue collections add certainty for the upcoming year.
The state’s monthly revenue review for October was released Nov. 10, and the news was good. Net general fund revenues totaled $1.994 billion for the month, which is $87 million (4.5%) more than forecast in February.
Higher net receipts from sales taxes (+$59 million) and corporate taxes (+$40 million) were partially offset by lower-than-expected net individual income tax (-$6 million) and other tax receipts (-$6 million).
A pattern of strong collections
For the state’s fiscal year 2022, which began on July 1, year-to-date state general fund collections are now $7.968 billion, or $744 million (10.3%) more than forecast.
The stronger-than-expected revenue collections for the first four months of this fiscal biennium continue a trend that extends back to the end of last biennium, when collections exceeded estimates by $2.67 billion.
In addition to more than $3.4 billion in higher revenue collections since the last budget forecast in February, the special session budget approved in June included a state budget reserve of $1.786 billion and a cash flow account of $350 million. The enacted budget left $127 million on the state’s bottom line.
Next forecast coming soon
The collections report focuses on revenues and does not include updated information on state expenditures. The next full state budget and economic forecast, which will project revenues and expenditures, will be released around Dec. 1.