Stronger State Revenue Boosts Rainy Day Fund and Budget Balance
State Finishes Fiscal Year with $342 Million Balance
The annual fiscal report released Monday by the state’s Department of Administration (DOA) contains some good news, as expected. It confirms the Department of Revenue report from early September that General Fund tax collections of $13.5 billion were $126.6 million (0.9%) above the department’s May projections for fiscal year 2011-12.
Tax collections increased 4.7% relative to the amount in 2010-11. That’s by no means an exceptional year, but the improvement since the May projection will allow the DOA to deposit almost $109 million into the state’s rainy day fund. And the combination of higher than expected taxes and almost $27 million (GPR) less in the “gross appropriations” line of the General Fund budget yields a closing balance of $342 million GPR (after accounting for the transfer to the rainy day fund).
A copy of the Annual Fiscal Report is available online.