/ Modified jul 24, 2012 9 a.m.

State Revenues Rise Above Expectations

Combined with spending cuts, surplus totals $379M

By The Associated Press

Arizona's post-recession budget picture continues to brighten as the state begins a new fiscal year in better shape than had been expected.

The Joint Legislative Budget Committee reported that tax revenue was $145 million more than anticipated during the fiscal year that ended June 30 and spending was $112 million less than expected.

The revenue figure was 6.3 percent higher than the forecast and included revenue growth above 6 percent in all three major categories -- sales tax, income tax and property tax.

The report estimated that the 2011-12 fiscal year ending state budget balance will be $379 million. That includes $257 million from the higher-than-forecast revenues and low spending, but it does not include $450 million that the Legislature set aside as a rainy day fund for the new fiscal year.

The Joint Legislative Budget Committee further projected a significant surplus for the 2012-13 fiscal year and said the two-year surplus will help offset a projected deficit in the 2014-15 fiscal year.

That deficit projection is driven largely by scheduled expiration in June 2013 of the one-cent education sales tax, although a proposed ballot initiative for this fall would extend it permanently if approved by voters.

By posting comments, you agree to our
AZPM encourages comments, but comments that contain profanity, unrelated information, threats, libel, defamatory statements, obscenities, pornography or that violate the law are not allowed. Comments that promote commercial products or services are not allowed. Comments in violation of this policy will be removed. Continued posting of comments that violate this policy will result in the commenter being banned from the site.

By submitting your comments, you hereby give AZPM the right to post your comments and potentially use them in any other form of media operated by this institution.
AZPM is a service of the University of Arizona and our broadcast stations are licensed to the Arizona Board of Regents who hold the trademarks for Arizona Public Media and AZPM. We respectfully acknowledge the University of Arizona is on the land and territories of Indigenous peoples.
The University of Arizona