Sales and income tax revenue in the state are up 3.5 percent for the year– much better than the 1.5 percent previously projected by the state’s economists, bringing a glimmer of hope for the state’s budget. The state Board of Economic Advisors met today and gave the summary of the past year’s revenues.
These increases are modest, says BEA spokesman Don Herriott, and the state has a long way to go to make up for the hole left when federal stimulus funds ran out.
Sales and income tax represent about 80 percent of the $5 billion in revenue for the state.
On Feb. 10, the BEA will present its final state revenue estimate for the upcoming fiscal year. Then, the House of Representatives will set the spending amounts, which by Constitution must not exceed the amount of money coming in. View economic indicators FY 2007-2010
On the down side, Herriott says he is not seeing anything happening in the real estate market, with the number of new homes being down 80 percent from two to three years ago, with “no indication that will turn around anytime soon.”