The latest numbers show ordinary tax collections are about 2.8 percent below forecast. Including the Department of Revenue’s successful initiative to boost corporate tax collections, the trend is near the forecast mark.
Economic recovery is not moving as quickly as expected, which has reduced sales tax collections and increased Medicaid (+$250 million) and community college spending (“unprecedented growth”).
Whatever happens the rest of this year, however late you get your tax refund, and whatever the budget looks like for the next fiscal year, problems will only grow in FY 2011-12 when the federal bailout funds disappear.
On the bright side, the legislature does not return until May.
