R.I. fails to meet budget estimates for revenue collections in August

THE RHODE ISLAND Department of Revenue released its monthly revenue assessment report for August, showing that total general revenues were down 0.3 percent from estimates. / COURTESY OF RHODE ISLAND DEPARTMENT OF REVENUE
THE RHODE ISLAND Department of Revenue released its monthly revenue assessment report for August, showing that total general revenues were down 0.3 percent from estimates. / COURTESY OF RHODE ISLAND DEPARTMENT OF REVENUE

PROVIDENCE – The director of the R.I. Department of Revenue did not mince words when discussing the state’s revenue performance in August, saying it was “like pushing a wet noodle.”
In August, the department collected $242.9 million in revenue, which was $716,086 or 0.3 percent less, than $243.6 million budgeted, according to the monthly revenue assessment report.
Director of Revenue Rosemary Booth Gallogly said in a statement that August revenues “lagged expectations.”
She said the August monthly results are “better than July when it comes to the personal income tax and all other general revenue sources but these modest improvements are more than offset by the underperformance of monthly sales and use tax adjusted revenues and the lottery transfer.”
“At this point in time, the state’s revenue performance is like pushing a wet noodle; it mostly bends rather than moving forward,” she stated.
Personal income tax collections fell 0.8 percent – $86.4 million was collected compared with $87.1 million expected. Departmental receipts had a gain of 3.4 percent after $13.6 million was collected compared with $13.2 million expected. Lottery transfers dropped 3.3 percent, from $31.9 million collected compared with $33 million budgeted.
Fiscal year-to-date revenues also trail fiscal year-to-date budgeted revenues by 0.2 percent, with total general revenues at $446 million, compared with $446.9 million budgeted.
Gallogly said it is “disconcerting” that year-to-date revenues trail year-to-date expected revenues so early in the fiscal year.
The Fiscal Year 2015 revenue assessment report, issued monthly, compares adjusted general revenue by source to expected general revenue. Expected revenue is estimated by the department’s Office of Revenue Analysis from estimates enacted in the Fiscal Year 2015 budget.
The entire report can be read at http://www.dor.ri.gov/under the state revenue briefs directory.

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