The trend of flattening state tax collections continued this past month according to the latest revenue update published by the Economic and Revenue Forecast Council. Revenues were up during the period of May 11th to June 10th $74.4 million or two percent higher than forecast in February. In the months since then, collections have cumulated just $13.8 million or 0.1 percent growth over the forecast.
Revenue Act collections – those taxes on sales, use, business and occupation, utility, and tobacco – accounted for $11.2 million of the growth in the May to June period, 0.6 percent higher than forecasted in February. Cumulative collections since the forecast are down $40.1 million or 0.6 percent. Real estate excise taxes have been strong since the February forecast and continued that trend up $9.4 million or 10.3 percent. Property tax collections eliminated a shortfall experienced last month, now up $44.6 million or 2.1 percent cumulatively since February.
The report also noted an increase the state’s unemployment rate to 4 percent as well as a 6.9 percent decrease in exports between the first quarter of 2023 to the first of 2024 – led by a 20 percent drop in aerospace products and parts.
A new revenue forecast is anticipated this week, as state agencies organize funding requests ahead of submission to the state Office of Financial Management in September.