Down, Down, Down
Avoid the rush: Panic Now!
The state finally released the November 2018 General Revenue Report.
The big numbers aren’t as big as they ought – or need – to be.
Compared to November 2017, net General Revenue plummeted 9.1%! Now five months into the state’s 2019 Fiscal Year, total revenue at the end of November was down 4.9%.
That November 2017 report showed income up 8.2%, in other words, a 17.3% swing from FY2017 to FY2019.
Looking at the revenue categories, Individual Income Tax receipts slid 7.1% for the month while sales tax collections did came in 5%lower for the month (but up $2.5% for the year). Corporate receipts were up but they’re too small a piece of the puzzle to move the grand total.
What does this mean?
Nothing good. The sales tax receipts include what should have been a bigger “Black Friday” bump. Income tax collections continue to trend the wrong way. While income tax money should move up soon (due to the revised, more correct withholding tables sent out in October), well, it’s going to be hard for the legislature to increase spending next year to schools or other basic needs.
And, cuts to the current budget shouldn’t be ruled out.
FY19 YTD [5Months] FY18 [5Months]
Individual Income Tax $ 2,570,000,000 $ 2,690,000,000
Sales Tax $ 910,700,000 $ 888,300,000
Corporate Taxes $ 145,200.000 $ 137,800.000
Other Taxes $ 143,600,000 $ 167,500,000
REFUNDS $ 326,200,000 $ 257,900,000
________________ _______________
$ 3,440,000,000 $ 3,620,000,000
Glenn