State revenue exceeded expectations last month by a net of $19 million.
Tax Commissioner Doug Ewald reports $359 million in tax revenue come into state coffers in June, well above the $339 million forecast. The strong growth in June pushed state tax receipts for the fiscal year that ended June 30th 4% above projections. It has allowed the state to replenish the cash reserve balance, now at $362 million.
Ewald says individual income tax led the way, up 5.3%. Ewald says it appears companies gave their workers more hours rather than hiring more people.
“I think there’s still some cautious optimism out there,” Ewald says. “But, I think they’re finding that it’s maybe a little bit more economical at this point in time to have somebody work a few more hours a week than to bring on that new employee on a full-time basis.”
Ewald says spending remains cautious with net sales tax receipts up slightly, at 4.7%. Though that seems a healthy increase, Ewald says sales tax receipts actually missed their projected target. He says fewer refunds helped bolster the sales tax revenue.
Corporate taxes rose 14.2% above the forecast.
Ewald doesn’t expect the strong tax revenue growth to continue. He foresees it leveling off and beginning to stabilize.
To review General Fund Receipts click here