February 18, 2008 - New Revenue Figures Released by Department of Finance
By David Walrath
The Department of Finance has released its new revenue report that reflects the December and January revenues. This report is based on adjusted July to January revenues and the 2008-09 mid-year revenue estimates revision. The glass still is either half-full or half-empty in this very volatile revenue situation.
While the November and December revenues were greater than previously estimated, the result is still a cumulative about $900 million lower than estimated revenues for the first half (July 2007- December 2007) of this year. The January below estimate is about $140 million. If the state revenues continue on this proportion of less than anticipated revenue, the full year reduction will be close to $2.5 billion. This is the glass half-empty.
Even if the revenues are $2.5 billion lower than estimated, the total state revenues will be greater than estimated in January. This is the glass half-full.
From the November report to the February report (the months of December and January revenues) the State General Fund revenue increased by $20.1 billion to a total of $53.8 billion.
The state will not be flush with cash, and revenues can continue to soften; however, the economic data appears to indicate that it might not be as bad as anticipated.
For the latest information on how state revenues can affect your district budget, please visit this link for information on attending the SSDA Annual Conference in Sacramento March 27, 28 and 29, 2008.
