The state’s January tax collections came in below expectations, prompting Gov. Haley Barbour to send a statement warning additional budget cuts are possibly coming.
“The State Tax Commission reported (Jan. 29) that revenue collections for the month of January fell substantially below expectations. Previous budget cuts were based on an 8.2 percent shortfall for the first half of the fiscal year, but preliminary reports show January’s tax collections missing the mark by 12.2 percent, or $43.4 million. It is the worst showing of the current fiscal year. It is also the 17th consecutive month revenue has fallen short of estimates and the 14th consecutive month where less money was collected than the previous year.
“I soon will be forced to look at whether additional cuts will be necessary in the current fiscal year beyond the $437 million in cuts already made. The law requires a balanced budget, and I will uphold the law.”