August 13, 2009

Department of Finance Revenue Report

By David Walrath

The Department of Finance has released their monthly finance report for July General Fund revenues. The report shows that July revenues were slightly better than the revenue forecast made for passing the State Budget. This barely positive situation, however, was from better than expected corporate tax payments. Even with the “Cash for Clunkers” program stimulating automobile sales and, therefore, sales tax revenues, sales tax revenues were below estimates.

The good news in all of the recent state economic and revenue reports demonstrate more positive signs of recovery. The bad news is the reality that there will be continuing unemployment increases and continuing pressures on what are very tenuous beginnings of an economic recovery.  

Compared to the State Budget revenue estimates, the General Fund was $65 million better than projected for a 1.3% increase on a $5,144 million revenue forecast. July is not a major revenue month.