The state missed its revenue projections for the first two months of the fiscal year by nearly $100 million, according to figures released today by the state Treasurer.
Sales tax receipts represented the bulk of the revenue miss, coming in $45 million under projections, followed closely by gross income tax, which missed the mark by $31.5 million. Corporation business taxes edged out projections by $3 million.
In all the budget called for collections of $2.03 billion in the first two months of the year, while actual collections came in at $1.93 billion. Revenue collections beat the first two months of last fiscal year by less than 1 percent, a figure that may not bode well for the governor’s budget, which relies on revenue growth of 7 percent.
The revenue miss comes a day after rating agency Standard and Poor’s dropped the state’s outlook to negative, while affirming its AA- credit rating. S&P used the aggressive revenue figures as one reason for dropping its financial outlook and both Moody’s Investor Services and Fitch Ratings mentioned the optimistic revenue projections and the lagging state economy in recent ratings notes.
August revenue collections totaled $1.63 billion, $82 million short of the projected income for the month.