Arizona general fund tax collections fell again in August, resulting in a prediction by the Joint Legislative Budget Committee of a $1.5 billion budget gap in fiscal 2010. August was the 13th month in a row of double-digit revenue declines.
The latest estimate by JLBC financial analysts is in line with earlier predictions of the fiscal 2010 shortfall by the governor’s office and legislative analysts.
August revenue collections totaled $523.9 million, the committee said, $47.5 million below what was expected and 12.7% less than collected in August 2008. State expenditures in August totaled $572.5 million.
Total revenues for the first two months of fiscal 2010, which began July 1, are $1.1 billion. That is $80.5 million below the estimate used to develop the state budget and $356.6 million less than collected in the same period of fiscal 2009.
“Economic activity in the state has not yet reached its bottom,” the JLBC said in its monthly report on state revenues.
Sales tax revenue totaled $287.6 million in August, some $20 million less than expected.
Individual income tax collections of $231.1 million were off slightly from August 2008, but corporate income tax collections fell almost 70% from last year. The corporate tax brought in $5.9 million, some $9 million less than expected.
The Legislature’s Finance Advisory Committee will meet Oct. 22 to review and revise its revenue estimate for fiscal 2010.