State Revenue Estimate Cut By $167 Million

February 27, 2018

State analysts have reduced their previous estimate for state tax and revenue collections by $167 million, citing a continued decline in corporate income tax collections.

The new estimate reduces a Feb. 9 forecast of a two-year increase of $462 million to $274.4 million. The revised estimate means House and Senate members who are working on an $87 billion budget for 2018-2019 will have a little less money to use as they negotiate a final budget deal. The previous forecast acknowledged that corporate income tax collections were $113 million below estimates through December.

But analysts concluded that was caused by a state decision to let businesses impacted by Hurricane Irma hold off on tax payments until Feb. 15. They projected the shortfall would be negated when the delayed payments began coming in, the analysts said. It didn’t happen.

“While the data for February is still preliminary, it appears that only a small fraction of the expected total was actually received,” the new forecast said. Analysts cut their projection for corporate income tax collections in 2017-2018 by $94.3 million and by $73.1 million in 2018-2019, resulting in the $167 million decline in the overall estimate.

Facing a March 9 end to the annual legislative session, lawmakers have not started formal negotiations on a new state budget, which will take effect July 1.

Comments

One Response to “State Revenue Estimate Cut By $167 Million”

  1. alan on March 1st, 2018 7:28 am

    $87 Billion State Budget for one year. That is more than all but about 33 countries in the entire world. What are we spending it all on?





Have a comment on this story?

We welcome your comments on this story, but there are some rules to follow::

(1) Be Nice. No comments that slander another, no racism, no sexism, no personal attacks.

(2) No Harrassing Comments. If someone says something bad about you, don't respond. That's childish.

(3) No Libel. That's saying something is not true about someone. Don't do it.

(4) Keep it clean. Nothing vulgar, obscene or sexually related. No profanity or obvious substitutions. Period.

(5) NorthEscambia.com reserves the right to remove any comments that violate our rules or we think to be inappropriate. We are not responsible for what is posted. Comments may not appear right away until they are approved by a moderator.

(6) Limit your comments to the subject in this story only, and limit comments to 300 words or less. Do not post copyrighted material. Comments will not be added to stories that are over 30 days old.

(7) No posts may advertise a commercial business or political group, or link to another commercial web site or political site of any kind.

Written by William Reynolds · Filed Under News