Administration Secretary Kathy Hoyt says it may be necessary to make another downward revision in state revenue projections for this year because a new report shows that income tax receipts are slumping.
Hoyt says personal income tax revenues were down almost 18% last month.
Hoyt is concerned about revenue growth for the rest of the year because the income tax is the state’s single largest source of revenue:
(Hoyt) “So it gives us real pause, makes us worry about the April filing season. And we are not sure that things will turn around quick enough at the national level and us follow that recovery to make real impact.”
The state’s Emergency Board will meet next Tuesday to consider another downward revision in revenues for the current fiscal year.
Governor Howard Dean has said he would support a plan to use the state’s rainy day funds to cover any additional cuts that may be needed to balance this year’s budget.