State revenue moved in a positive direction in September, but the woman who keeps a close watch over the numbers isn’t celebrating quite yet.
September’s numbers show a surge in corporate income and franchise tax collections, up 23% for the month, now up 15.5% for the year, leading to a 2.6% increase in net general revenue collections for the year. The state reports that net general revenue collections so far this year are $1.75 billion, compared to $1.71 billion last year. September collections for Fiscal Year 2010 increased by slightly more than 9%, compared with year-ago figures: $707.7 million, compared to $648.7 million.
State Revenue Director Linda Luebbering says it appears Governor Nixon won’t have to withhold any more money to keep the state budget in balance.
“Given the reductions that we have already made, the restrictions that the governor has already announced, we’re hoping we’ll be able to stay in balance without doing additional restrictions for the current fiscal year,” Luebbering says.
While corporate tax collections rose substantially, individual income tax collections rose only slightly, up barely more than a percent in September, only 1-and-a-half percent for the year. Sales tax revenues increased for the month, but still lag 1.8% behind for the year.
Luebbering says firms simply aren’t hiring or giving raises.
“Right now, I think it’s more caution than anything. Employers are not necessarily wanting to bring people back to work unless they have some comfort that the economic recovery is really real and sustained,” Luebbering says.
Still, the numbers are up, at least somewhat of an encouraging to Luebbering.
“Encouraged and cautious, yes.”
State Releases September 2010 General Revenue Report
State Budget Director Linda Luebbering announced today that 2011 fiscal year-to-date net general revenue collections increased 2.6 percent compared to 2010, from $1.71 billion last year to $1.75 billion this year.
Net general revenue collections for September 2010 increased by 9.1 percent compared to those for September 2009, from $648.7 million to $707.7 million.
GROSS COLLECTIONS BY TAX TYPE
Individual income tax collections
• Increased 1.5 percent for the year, from $1.20 billion last year to $1.22 billion this year.
• Increased 1.1 percent for the month.
Sales and use tax collections
• Decreased 1.8 percent for the year, from $461.6 million last year to $453.1 million this year.
• Increased 3.3 percent for the month.
Corporate income and corporate franchise tax collections
• Increased 15.5 percent for the year, from $113.0 million last year to $130.5 million this year.
• Increased 22.9 percent for the month.
All other collections
• Increased 24.0 percent for the year, from $102.1 million last year to $126.6 million this year.
• Increased 31.4 percent for the month.
• Increased 4.4 percent for the year, from $171.8 million last year to $179.3 million this year.
• Decreased 31.1 percent for the month.