State revenue up in June

Higher-than-expected tax collections boost budget

? A bit of good financial news came to the state as its 2003 fiscal year ended, in the form of better-than-expected tax collections in June.

And, with a late boost from the federal government, the state probably took in about as much money as it expected for all of fiscal 2003, about $4.23 billion in general revenues.

State Budget Director Duane Goossen said Tuesday the state collected about $443 million in tax revenues in June, when it anticipated collecting $434 million. The difference is $9 million, or about 2.1 percent.

Going into June, revenue collections for fiscal 2003 had fallen about $54 million short of predictions. Even with June’s unanticipated revenue, the gap still would be about $45 million.

However, two weeks ago the state received $45.7 million in aid from the federal government — erasing the shortfall.

The federal relief also allowed the state to finish fiscal 2003 on Monday with about $100 million in cash reserves, a cushion that would permit it to keep intact its $10.2 billion budget for fiscal 2004, even if revenues fall short of predictions in fiscal 2004.

“We are in a better position than we were a year ago,” Goossen said. “We’re expecting to be able to get through this next fiscal year and implement the budget that was approved.”

The state will not have final figures on fiscal 2003 until it calculates nontax sources of income, such as interest earnings, and reviews agencies’ spending.

But the June tax revenues, coupled with the federal aid, left state government with some breathing room — and hope that Gov. Kathleen Sebelius won’t have to order emergency budget cuts, something former Gov. Bill Graves did twice last year.

“We think that’s great news,” said Sebelius spokeswoman Nicole Corcoran-Basso.

Goossen said preliminary figures suggested a tax amnesty program may have been more successful than anticipated. Under the program, the Department of Revenue waives penalties for businesses and people catching up on back taxes.

Corporate income tax collections, at $36.5 million, were $6.5 million more than expected in June.

Sales tax revenues — remitted to the state by merchants — were $5.6 million more than expected in June, at $135.6 million.

The state expects to receive $154 million in additional aid from the federal government under a package of relief and tax cuts enacted last month by Congress.

An additional $45 million — for a total of $91 million — comes with no strings.

The remaining $63 million is for medical services for the poor.