At this time last year, state lawmakers were in the midst of creating a two year budget with a deficit that was more than a half a billion dollars. It’s a different situation this year, but for the second month in a row, personal income tax collections came in at a rate lower than expected.
For the second month in a row, the state collected more income taxes than forecasts suggested it would. That’s quite a turnaround from last year, when the new state budget had to be trimmed as income taxes fell short nearly $850 million.
Just one month ago the House, Senate and governor finished a marathon budget battle where leaders had to fill a $1 billion gap. Now the state is getting its first look at how the economy is shaping up for the next two years.