State tax revenues came in under budget again in May, and spending also was below the budget, the Joint Legislative Budget Committee said Friday in its monthly report.
State revenues were $11.9 million below budget for the month, and total general fund collections with one month to go in the fiscal year were $55.4 million below budget, the report said.
"A decline in individual income tax withholding was the primary reason for the May forecast shortfall," the report said. Withholding was down 0.8 percent during the month.
The report showed that state spending also was running below budget by $23.1 million for May and $130 million for the first 11 months of the fiscal year.
Sales tax revenues in the two big categories of retail and construction ran ahead of budget, the report said. Overall, sales tax revenues in May were 4.2 percent ahead of May 2013 and equal to the budget.
Arizona's economic health, as measured by indicators tracked by the Federal Reserve Bank of Philadelphia, ranked it 38th in the country in an index that combines employment, hours worked in manufacturing, unemployment rate and wages, the JLBC said.