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Senate fiscal office reports improved revenue estimates but warns against spending one-time funds
Summary
Sen. Blackham announced a consensus revenue estimate raising one-time revenues by $42 million for FY2004 and adding $50.3 million of ongoing revenue for FY2005 (combined ongoing increase $91.9 million); he cautioned that one-time funds should not be used for ongoing commitments and noted Medicaid/Medicare pressures.
Sen. Blackham reported the Senate’s consensus revenue estimates on 2004-02-17, saying new figures increase one-time revenues for the fiscal year by $42,000,000 and add approximately $50,300,000 of ongoing revenue for fiscal year 2005. When combined with a previously noted $38,100,000, Blackham said the total ongoing revenue improvement for 2005 would be about $91,900,000.
Blackham reviewed components of the forecast: sluggish sales and use tax growth, improving corporate franchise tax collections (up 11.7% year-to-date), mineral lease gains tied to higher prices and production, modest individual income tax growth and lower motor fuel use. He cautioned senators that the improved totals "do not in any way create an opportunity to enhance our budgets in any significant manner outside of those arenas," noting Medicaid and Medicare cost pressures and the risks of using one-time funds for ongoing programs.
He advised prudence in budgeting, saying the Senate remains roughly $60 million short of the governor’s budget when combining the figures discussed. Blackham invited questions and provided a handout of the consensus estimate.
