Inflation Hits State Revenues, Too
The Independent Fiscal Office and state Department of Revenue have released February 2022 revenue reports. State General Fund collections year-to-date exceed estimates by nearly $2.5 billion or 9.4%. The overage was primarily due to stronger-than-anticipated collections for the sales and use tax and personal income tax. Much of this is an extension of out-of-control inflation. PIT collections alone were 9.6% above estimate. February brought in $2.4 billion in General Fund revenues.
The Motor License Fund received $197 million in February, $24.8 million below estimate. As fuel prices rise, people seem to be consolidating trips and driving less. The fund includes liquid fuels taxes and other license, fine, and fee revenues. Motor License collections for the fiscal year-to-date total $1.8 billion, 2% above estimate.
Click here for the Independent Fiscal Office report. View the state Department of Revenue press release here.