04.08.10: State Controller Releases March Revenues – Good News Again
By David Walrath
Today the State Controller released his report of state revenues for March and for 2009-10 to date. March revenues were up 5.9% above estimate or slightly more than $350 million. This increase, combined with prior increases, results in state revenues being approximately $2.3 billion greater than the estimate in the Governor’s budget on January 10, 2010. Additionally, the Controller reported that expenditures were also less than the amount estimated for March. More revenue and less spending are both good news. If this trend continues, anticipate a more positive May Revision when it is released on May 14, 2010.
The additional revenue in the current year and probable additional revenue in the budget year combined should close up to $6 billion of the $20 billion budget gap. Additional federal funds and budget solutions to date should close another $4 to $5 billion. This means the types of solutions for closing the budget gap will not need to be as drastic as the proposals in the Governor’s budget. While this does not mean funding increases for schools, it could mean the Governor’s budget proposed cuts will not be made.
