October revenue numbers well below estimates
It’s appropriate that Halloween was two days ago, because the state’s revenue collections for October that were released just a few minutes ago are frightening.
Per Kathy Waterbury of the Mississippi State Tax Commission:
• The MSTC collected $390 million in October, which is $27.8 million below the estimate made just before the Legislature adjourned the 2009 session in late June. Advancing the Halloween theme, that represents a shortfall of 6.66 percent.
• For the first four months of fiscal year 2010, revenue is 7.42 percent short of estimates, for a total shortfall of $105.2 million. Spread out over the entire fiscal year, that would put the state short about $315 million by the time FY11 start next July 1. That number is right in the middle of Gov. Haley Barbour’s $275 million to $350 million estimate he made when he announced budget cuts in September.
As has been the case in prior months, sales tax revenue and individual income tax revenue led the downward spiral, Waterbury said.
Magnolia Marketplace will be at the monthly meeting of the Stennis Capitol Press Corps at lunch today. Ole Miss Chancellor Dr. Dan Jones is the speaker. It will be interesting to see what he says about his institution’s budget situation as it relates to today’s revenue news. We’ll have the details as soon as they’re available.