Final revenue report for FY2007

Collections of net available general revenues continued to increase in June, which officially put the state’s total surplus over the $1 billion mark. Gross revenues of $522.4 million in June were 6.5 percent above June 2006 and 12.8% above forecast.

2007 ended up as follows:
Gross revenue: $5.4 billion (5.8% above 2006);
Net general revenue: $4.47 billion (5.7% above 2006);
Gross receipts collections (sales/use, excise taxes): $2.2B (4.8% above 2006);
Individual income tax: $2.5 billion. (7.6% above 2006);
Corporate income tax: $390.7 million (3.3% above 2006).

It does not appear as though the report has been posted online yet, but when it is, you can find it here (the May, 2007 report is currently at the link). This report is the last one that includes revenue from the full rate of sales tax on groceries, on sales tax on energy for manufacturers, on income tax for families living below the federal poverty line, and on off-road diesel. These next few monthly reports will be very telling. Like many of the other 40 states that built up a revenue surplus, we enacted some meaningful tax relief, which will reduce revenues significantly.

The new GR budget for FY2008 is set for $4.35 billion. Since we only meet in regular session every other year, we have also enacted the budget for FY2009, which is $4.52 billion. I'm very hopeful that we'll continue to see general revenue increase at a clip that will allow us to cut the other half of the grocery tax in 2009. Equally important is the continued reduction of sales tax on energy usage, not only for manufacturers but for all residential and commercial consumers. I can tell you with confidence that my district's top priority is the continued reduction of the grocery tax -- if you can't hear the alarm being sounded now, wait until the 2003 Streamlined Sales Tax Act goes into effect on January 1. It's imperative for those of us in direct competition with Texas to continue working towards sales tax relief on groceries and energy usage since neither is levied across the state line. I'm hopeful that gross receipts collections will continue at a pace to allow us to do just that.