Sun, Sep 07, 2008

Tucson Region

State budget-deficit fix may be insufficient

Capitol Media Services
Tucson, Arizona | Published: 05.01.2008
PHOENIX — A fix in the current state budget approved just this past month may not be enough.
New figures Wednesday show sales tax collections for March were less than $350 million, which is about $3.5 million less than the same figure a year earlier.
The state's net individual income tax revenues — payments minus refunds — were even more disappointing. Arizona got $62 million, compared to 2007 income tax collections of $105 million.
But legislative budget analysts said part of that may be due simply to the Department of Revenue processing refunds faster this year than the year before.
And corporate income tax collections also are below a year earlier.
The real benchmark? The staff of the Joint Legislative Budget Committee says what was actually collected in March is below the latest revised revenue forecast, which is what lawmakers used when they plugged a $1.21 billion deficit last month.
At this point, though, it remains unclear whether further legislative action is needed.