After ending the 2011 budget year with a nearly $50 million surplus, state revenues last month unexpectedly came in nearly $18 million below projections.
Revenues in July, the first month of the budget year, were $17.2 million below estimates, mostly due to a shortfall in individual income tax , according to Capitol News Service. Corporate income taxes were also below projections after months of coming in above estimates; corporate income taxes were projected to total $9.1 million, but only hit $8.6 million.
Finance Commissioner Sawin Millett told Capitol News Service that the state could face trouble with both lower revenues and a loss of federal funds related to the federal deficit reduction. The state will study August and September revenues to determine if its estimates are accurate, he said.
