Wednesday, February 2, 2011

Revenues Up But Big Deficit Still Looms

Pennsylvania’s tax revenue continues to come in above estimates.
The Department of Revenue collected 73-million more dollars than it expected to in January, bringing year-to-date tax revenue 264 million dollars above projections.
House Appropriations Chairman Bill Adolph, a Republican, says the numbers are “great news,” but tempers his optimism.

"Even if it’s – I think it’s a little over 200 million right now over projections. That may be 400 million by June 30th. When you’re looking at a 4 billion dollar deficit, those projections are not going to fill that hole."

Adolph says things are slowly turning around.

"That’s four straight months, I believe, in increased revenues over projections. It’s much better than the previous 26 months, when we were below our projections. I think nationwide you’re seeing a very slow recovery."

This time last year, Pennsylvania was 374 million dollars behind estimates. Two years ago, the budget gap was 1.1 billion.
Corporate, sales and income taxes are all slightly above estimates, though table games revenue at casinos is 17 percent off the projected mark.

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