Louisiana’s Revenue Estimating Conference has lowered its estimate of general fund revenue in fiscal 2010 by another $103 million as result of declining collections of corporate income, energy severance, and sales taxes.
The panel last week said general fund collections would total $8.1 billion in fiscal 2010, which begins July 1, down $1.3 billion from the $9.4 billion collected in fiscal 2009. In December the four-member conference reduced its estimate for fiscal 2010 general fund revenues by $750 million.
Greg Albrecht, chief economist for the Legislative Fiscal Office, predicted that the state would collect approximately $2.5 billion in individual income taxes in fiscal 2010. However, he said it was unclear how recent changes in the federal tax code and tax breaks included in the stimulus package would affect state income tax revenue.
The latest estimate will be the basis of a proposed operating budget that Gov. Bobby Jindal must present to the Legislature by March 13.
The revenue conference also certified an $865 million surplus from fiscal 2008. Jindal has said he wants to use $300 million of the surplus for coastal restoration efforts.