Wednesday, February 11, 2015
Soft Spot in State Receipts
Sales tax receipts, which reflect consumption of more ordinary folks, were up only around 2%. The cash report indicates there was an accident of timing that understated normal sales tax revenues. But even adjusting for that event will give you an estimate of under 5%. With population gains of around 1% and inflation around 2%, that number produces a real per capita gain of around 2% - not terrible - but not a booming result either. Although there is nothing on the immediate horizon in the way of bad economic news, we remain in a position where any economic setback could upset the state budget situation.