Wednesday 25 January 2012

Another drop in Colorado sales-tax revenue - Business First of Buffalo:

http://alientamivida.com/daily-news/david-paterson-is-going-to-teach-a-class-on-governing/
percent — in May from the same monthy theyear before, girding legislatore for what they expect will be another roundr of cuts in next year’s fiscal With the state most of the way throughy a fiscal year that ends on June 30, no more cuts are likeluy for this year, said Joint Budget Committee Vice Chairman Jack a Democratic representative from Boulder. The Legislature has designatexd that any further funding shortfall this year will be fillede by money fromthe state’ds undesignated reserve fund and from a one-dag borrowing of other funds to be repaid on July 1.
the continued fall of revenues below expectations means the six JBC memberx who setthe state’s budgegt must begin looking soon at additional ways to scale back expensew or services in next year’s fiscal plan, severaol members said. “I guess this means we’ree not out of the woods Pommer said. “We’re goinfg to have to prepare for more cuts next year on top ofwhat we’ves already made.” Legislators filled a $1.4 budgett shortfall over the past six months by raidingg the reserve funds, transferring hundreds of millions of dollaras from cash-funded accounts and cutting about $300 milliom in services.
As revenues continue to come inbelow forecast, that talk will begij again. State sales-tax receipts for May were off by $30 a 17.9 percent drop from last year. Individual incom taxes fell by $66.3 million or 19.7 and corporate income taxes droppedby $2.2 milliobn or 13.2 percent. State reserves have about $148 million that can be used to offsertrevenue shortfalls, noted Rep. Mark Ferrandino, D-Denver. If the stat must transfer funding temporarily, that will only push the problem of balancing the budget further off untilnext year, he “The question is: Does revenue in the future pick up if we’re starting to see recovery, or not?” Ferrandinoi said.
“We’re starting to see some indications that the econom y is startingto recover, if not level

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