State revenues decline for seventh straight month

February collections come in close to $70M less than projected

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In news that should be a surprise to no one, state revenue collections continued to decline in February.

Finance and Administration Commissioner Dave Goetz today announced that overall February revenues, representing January sales, were $668 million, which is $69.7 million less than the amount budgeted for the month.

"February becomes the seventh consecutive month this fiscal year in which sales taxes and corporate income taxes experienced negative growth over a year ago," Goetz said. "February also marks the twelfth negative growth month for sales tax collections out of the last fourteen months, reflecting a continued weakness in consumer confidence and the state's overall economy.

"In spite of the severe revenue shortfall, the governor and the General Assembly will work together to end this fiscal year with a balanced budget as constitutionally required."

On an accrual basis, February is the seventh month in the 2008-2009 fiscal year. During the month, the general fund was under collected by $61.1 million and the four other funds fell short by $8.6 million.

Sales tax collections were $53.8 million less than the estimate for February, almost 8 percent below last year's take. Year to date, collections are down 6 percent.

Franchise and excise taxes combined were $4.3 million below the budgeted estimate of $37.7 million. For seven months, revenues came in $167 million short of budget.

Year-to-date collections are $592 million below the budgeted estimate. The general fund was under collected by $543 million and the four other funds were under collected by $48.6 million.

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