State tax revenues, lagging behind earlier in the fiscal year, have stabilized and appear right on track.
State Tax Commissioner Doug Ewald reports that net receipts in September [Sept. receipts PDF] total just over $352 million, a tad over one percent of the forecast. Net corporate income taxes came in slightly better than 5% above the forecast, more than offsetting state sales tax receipts that came in 0.3% below projections and individual income tax receipts, down 0.6%.
Net General Fund receipts for the 2011-2012 fiscal year now total $880.7 million, 0.9% below the forecast of $888.5 million.
“We know the best forecast is the one that’s right; not too high, not too low, because we know that creates different issues when we’re too high or too low out there,” Ewald tells Nebraska Radio Network. “After the first quarter of the year, things are tracking fairly well.”
Ewald urged caution earlier in the year when tax receipts for July, the first month of the fiscal year, came in five percent below expectations. He reasoned that no trend could be predicted from one month of receipts.
September helped the state regain its fiscal footing. Ewald says that’s important, because September is the second biggest month in the fiscal year, lagging only behind April.