State Announces Revenue Update and Additional Expenditure Restrictions

State Budget Director Linda Luebbering announced today that actual revenue collections continue to fall below projections during April, a key month for state revenue.  As of April 20, net collections for April have fallen 19 percent.  Year-to-date collections are down 13.8 percent from last fiscal year. 

The average income tax refund is up nearly 8 percent compared to last year, while the average payment has fallen nearly 30 percent.  Also, withholding and sales taxes remain historically weak.  Through March individual withholding has declined five straight quarters and sales tax has declined 10 straight quarters.

Because of the Governor’s constitutional responsibility to ensure spending does not exceed available resources, additional expenditure restrictions of $45 million are necessary.  This restriction brings the total reduction for Fiscal Year 2010 to more than $900 million.  See the attachment (click here) for a list of the Governor’s April restrictions.