June 15, 2011

State Controller Announces May Revenues

On June 14, the State Controller announced that May revenues were up by more than $400 million compared to the May Revision which had already included a $6.6 billion increase in revenues.  If revenues continue to improve, the Democratic majority in the Legislature might be tempted to estimate continued revenue improvement and, thereby, reduce the need to have Republican votes to place taxes on the ballot.

Potentially they could pass a balanced budget with an additional $2 billion in anticipated revenues, no reserve, and $4 billion in one time solutions.  While this would not solve the ongoing structural budget deficit, it would kick a smaller can down the road and eliminate the need for Republican votes. 

We will know more by midnight on the 15th the strategy the majority party, the minority party and the Governor intend to pursue.

~Dave Walrath