Pulled down by a 67 percent drop in corporation and franchise taxes and an 8 percent dip in individual income tax cash receipts, state revenues for the fiscal year to date (July-September) have fallen 8 percent, or $140 million.
Pulled down by a 67 percent drop in corporation and franchise taxes and an 8 percent dip in individual income tax cash receipts, state revenues for the fiscal year to date (July-September) have fallen 8 percent, or $140 million.
The state Department of the Treasury's "September 2010 Net Receipts Report" shows that to-date state revenues for 2010-2011 (July - September) are $1.707 billion, for a decrease of $140 million or 8 percent compared to fiscal year 2009-2010. Total revenues this time last year were $1.847 billion, which was $320 million less than the prior year, a decline of 15 percent.
Already the Jindal administration is facing the new reality that an additional $108 million will have to be cut from the current-year state budget after Louisiana finished the recently ended fiscal year (June 30) in the red. Lawmakers recently learned that deep cuts made last year were not enough to balance the budget. Last week Commissioner of Administration Paul Rainwater placed most of the deficit blame on corporate income tax during the 2009-10 fiscal year falling far below what was anticipated - a decline that has accelerated this year.
This means the state spent more money than it collected in taxes during the 2009-10 fiscal year, and the governor has until the end of this fiscal year to cut spending in order to make up for the deficit. Rainwater hopes to have a deficit-reduction plan ready by the end of the month.
Below is the breakdown of current fiscal year to-date receipts that are contributing to the 8 percent overall decline in state revenues so far this year:
General sales tax cash receipts are $647 million, an increase of $14 million or 2 percent compared to last year. General sales tax cash receipts this time last year were $633 million, which was $122 million less than the prior year, a decrease of 16 percent.
Individual income tax cash receipts are $621 million, a decrease of $51 million or 8 percent compared to last year. Individual income tax cash receipts this time last year were $672 million, which was $6 million less than the prior year, a decrease of 1 percent.
General severance tax cash receipts are $185 million, a decrease of $10 million or 5 percent compared to last year. General severance tax cash receipts this time last year were $195 million, which was $150 million less than the prior year, a decrease of 43 percent.
Corporation and franchise tax cash receipts are $45 million, a decrease of $91 million or 67 percent compared to last year. Corporation and franchise tax cash receipts this time last year were $136 million, which was $8 million less than the prior year, a decrease of 6 percent.
Gasoline and special fuels tax cash receipts are $157 million, an increase of $5 million or 3 percent compared to last year. Gasoline and special fuels cash receipts this time last year were $152 million, which was $17 million less than the prior year, a decrease of 10 percent.
Miscellaneous taxes cash receipts are $52 million, for a decrease of $7 million or 12 percent compared to last year. Miscellaneous taxes cash receipts this time last year were $59 million, which was $17 million less than the prior year, a decrease of 22 percent.
To view the full report, click here.