July 21, 2008

State Ends 2007-08 Barely Above Estimates

The final 2007-08 General Fund revenues were released by the Department of Finance on May 18, 2008.  The final numbers show General Fund revenues were just barely above the May Revision estimate.  The trend continued for stronger than estimated personal income tax revenues and weaker than anticipated sale and use tax revenues.

The fact that revenues in May and June did not deteriorate from the May Revision estimate means the state budget negotiators do not need to deal with more bad news.  However, it also means they cannot expect higher revenues to close the budget gap.

Dave Walrath

dwalrath@m-w-h.com