General Fund Revenues Exceed Target for December

first_img(January 14, 2008)– Secretary of Administration Michael K. Smith released General Fund revenue results for the month of December, the sixth month of fiscal year 2008. General Fund revenues totaled $104.21 million for December 2007, +$0.11 million or +0.1 % more than the $104.10 million consensus revenue target for the month. This brought the fiscal year-to-date total in the General Fund to $559.12 million (+1.6%) above the cumulative revenue forecast of $550.17 million.The monthly consensus cash flow targets reflect the most recent fiscal year 2008 Consensus Revenue Forecast that was agreed to by the Emergency Board on July 24, 2007. The States Consensus Revenue Forecast is updated two times per year, in January and July. The January Emergency Board meeting was held on Wednesday, January 16, 2008.Monthly Personal Income Tax receipts, which are reported Net-of-Personal Income Tax refunds, finished December ahead of target with $56.41 million in revenue or +$2.21 million above the monthly revenue target. Personal Income Tax Receipts are by far the largest single state revenue source. December totals surpassed the December 2006 Personal Income Tax by +$7.81 million or +16.1%.The Rooms & Meals Tax slightly surpassed its target for December by +$0.07 million or +0.9%. Corporate Income Tax did not meet target for the month of December, falling below the forecast by -$1.26 million, due to higher than expected refunding.Sales and Use Tax again fell below target for December by -$1.27 million. The Estate Tax (difficult to predict), surpassed target for the month by +$1.19 million or +74.8%. This boosted the below target cumulative performance in the Estate Tax to -$0.86 million, (-9.1%) below cumulative targets for the year.Of the remaining other General Fund revenue categories, Insurance and the Property Transfer Tax both finished below target, while the Liquor Tax finished the month of December above the consensus revenue targets.Considering the continued uncertainty in the financial markets, the price escalation in oil and gasoline, and a national housing downturn, Smith notes that he will remain cautious about revenue predictions for the remainder of fiscal year 2008 and will continue to closely monitor economic indicators.Transportation FundSecretary Smith also announced revenue results for the Transportation Fund. The month of December was a very disappointing one for the Transportation Fund, which performed below target with revenues of $16.42 million or -6.1% below target. The poor performance in December caused the year-to-date totals to fall below the cumulative target by -$0.26 million. Motor Vehicle Fees, Motor Vehicle Purchase and Use Tax and the Other Fees category all fell below projections in December, with only the Gasoline and Diesel Tax categories performing above target. Motor Vehicle Fees were -$0.20 million below, Motor Vehicle Purchase & Use Tax was -$0.30 million below and the Other Fees category was -$0.75 million below their respective targets. The Diesel Tax performed well in December with +$0.12 million (+5.8%) above target, along with a slightly better than expected performance in the Gasoline Tax, surpassing target by +$0.06 million or +1.2%.Education FundIn announcing the Education Fund results for December, Secretary Smith reported that non-Property Tax Education Fund revenues, which constitute about 11% of total Education Fund receipts, totaled $12.03 million in December, -$0.63 million, (-5.0%) below the $12.65 million consensus revenue target for the month.Both the Sales & Use Tax and the Motor Vehicle Purchase & Use Tax in the Education Fund performed below target in December. The Sales & Use Tax was below target for the month by -$0.63 million or -6.8%, while the Motor Vehicle Purchase & Use Tax fell by -$0.15 million, (-7.5%). Cumulatively through December, the Education Fund now stands at -$3.6 million below the year-to-date target of $81.71 million.Overall Smith was pleased to have again exceeded projections in the General Fund in December. However, the below target performance in both the Transportation Fund and the Education Fund are cause for continued caution. The cumulative General Fund receipts are $559.12 million or +$8.95 million, (+1.6%) ahead of the cumulative target for Fiscal Year 2008. The Transportation Fund stands cumulatively at $110.62 million or -$0.26 million below the year-to-date target. The Education Fund also continued to fall below its cumulative target for FY2008 by -$3.56 million or -4.4%. The Total Year-To-Date figures for the three Funds combined are above the cumulative targets for the first half of Fiscal Year 2008 by $5.14 million or 0.7%.last_img

Related Post

Be the first to comment

Leave a Reply

Your email address will not be published.


*