Idaho state tax revenues fell $7.4 million short of forecasts in October, or 2.4% short, with shortfalls in both sales taxes and individual income taxes. For the fiscal year to date, that puts general fund revenues at $3.6 million ahead of the revised forecast. If current trends hold, that would put the state on track to end the current fiscal year next June 30 with a balance of $68.5 million.
The state still is collecting considerably more in tax revenue than last year, but the increase is less than lawmakers anticipated when they ended their legislative session in April; at that time, the budget they’d set for the current year was projected to result in a year-end balance of $173.8 million.
The difference in projected ending balance now compared to the April projection: $105.3 million. Though the state’s budget still is balanced – it’s not spending or planning to spend more than it brings in – the change in the rate of growth is what prompted Gov. Brad Little to direct state agencies to begin paring back budgets; they’re working on plans now for a 1% recission from the current year’s budget, and a 2% base reduction from their agency requests for next year. You can read the full monthly General Fund Revenue Report online here from the state Division of Financial Management; and the Legislative Budget Office’s monthly General Fund Budget Monitor is online here.