The money rolls in
As we predicted earlier in the week, the state Finance and Administration Department has revised its revenue forecast because income continues to outstrip earlier forecasts. It’s the second upward revision since the 2005 legislature passed the two-year budget.
As it now stands, DF&A predicts this fiscal year will end June 30 with a $332 million surplus after funding all appropriations. It predicts the state will fund all appropriation categories in the second year of the budget period, fiscal 2007, with a $234 million surplus. In July 2005, the date of the last revision, the surplus had been forecast at $98.4 million for this year and $68.7 million for fiscal year 2007.
Officials caution that there’s been a great volatility in growth rates of different revenue streams -- the use tax for one. Fuel prices and rising interest rates are a couple of key economic factors that could dramatically affect the future revenue picture. There was renewed talk today from Richard Weiss, the DF&A director, about the need for a rainy day fund to cushion the state against unexpected swings in revenue.
Comments
The whole $332,000,000 should be given back to the people who paid it...the taxpayers. A formula could be used based on the amount of tax each taxpayer paid in....those who paid more would get more. If we leave it with the State they come up with ways to throw it away. Getting rid of the state income and state death tax would work also....
Posted by: Anonymous | May 3, 2006 03:00 PM
Set up the rainy day fund by law and include in the law that when the revenue streams give out, the first thing that will be cut will the salaries of the state legislature and any of their staff which would stop the usual first acctivity of going after the neediest among us. Then take what is left and consider a "temporary" reduction in the state sales tax. That will put the greatest effect on the lowest level and this money will be spent whereas giving tax cuts to the income tax payers will insure that those that get it don't spend it but put it away in non-taxable savings so the state will lose the immediate impact as well as future revenue streams. It also could establish a foundation who's income would go to reduce college costs. The money would still be there if needed but it would be away from the Bigelow street light fund.
Posted by: Fed Up to Here | May 3, 2006 07:31 PM
"Set up the rainy day fund by law and include in the law that when the revenue streams give out, the first thing that will be cut will the salaries of the state legislature"
It will be hard to cut legislative salaries. When we pay them $14,000 per year there is not much to cut.
If you want more professional legislators you need to pay them like professionals. The most experienced legislator will make less than half what a first year teacher will make next year.
Posted by: an interested observer | May 3, 2006 11:14 PM