Strong Income Tax Lifts State Revenue Collections Despite Declining Growth Rates

June 17, 2019

Combined General and Education Fund revenue collections for the current fiscal year (2019) totaled $6.9 billion through the first eleven months. That represents year-over-year growth of 7.0%, exceeding the current revenue target of 5.7%. This despite a slight decrease in the growth rate compared to April.

Collections for the General Fund, however, fall short of the 5.3% point target used in budgeting. For the first eleven months of fiscal year 2019, General Fund revenue has grown only 3.6%. While collections are still within striking distance of the May target, for the seventh consecutive month the General Fund’s year-over-year growth rate has declined. Overall, since reaching 8.8% in October 2018, the growth rate has decreased 5.2%.

Due to another strong year in the Education Fund, though, combined General and Education Fund revenue is above target. Education Fund collections currently reflect an 8.9% growth rate compared with the year-end target of 6.0% year-over-year growth.

A snapshot of the collections is shown in the figure below:

More details of the revenue picture through eleven months of fiscal year 2019 is available here

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