State Revenue Grows, But Below Estimate

From The Treasurer's Office ~ Revenue collections for August show growth from the prior year, but are marginally below the estimate, State Treasurer Scott Meacham said today as reports for the second month of Fiscal Year 2011 were released.

Preliminary reports show General Revenue Fund collections for August 2010 were $350.8 million. That amount is: $15.5 million or 4.6 percent above the prior year; but $1.5 million or 0.4 percent below the official estimate.

“August revenue collections continue to show growth over the prior year, and year-to-date collections remain above the prior year and estimate,” Meacham said. “Revenue growth, while still positive, slowed somewhat from what we had seen in prior months.”

Meacham said personal income tax and gross production tax collections, while slightly below the estimate for the month, do not raise significant concerns.

“We are seeing small reductions in both areas compared to the estimate,” he said. “Natural gas prices have been somewhat lower during the summer months, which has impacted gross production collections. Lower income tax collections appear to be attributable to non-recurring items.” Meacham said sales tax and motor vehicle tax collections are a bright spot for the state.

“Continued growth in sales tax collections demonstrates public confidence in the economy, while motor vehicle collections show significant recovery in that sector.”

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