2010 Revenues Exceed Forecast (Just a Little)
Sour headlines and stories have been written about the report from the State Budget Office reviewing the just-concluded FY 2010.
State tax collection hits five-year low reported the Lexington Herald-Leader
Page One Kentucky wrote: Kentucky's General Fund receipts have declined for the second straight year. It's the first time we've seen a consecutive decline since the end of WWII, according to State Budget Director Mary Lassiter. To top it all off? Tax collections hit the lowest point in five years.
But lost in the reports is the fact that revenues actually came in a little higher than expected:
Although General Fund receipts declined in the just-concluded fiscal year, revenues were $27.2 million, or 0.3 percent, above the official projection, which called for a 2.7 percent drop in revenues.
So revenues were were they were eventually budgeted to be.
The real problem lies in the future where revenues are expected to climb to support the $17.1 billion budget the legislature passed.
Ignoring the costs of current deficits, $17.1 billion is relying on exceeding 2010 revenues by $700 million over the next two years, or a 4.3% increase.
Get ready for more legislative belt-tightening...
