|
All states except Vermont must end their fiscal
years with balanced budgets, and so states that bring in less
money than expected could have to cut spending, use savings or
raise taxes to end the shortfalls. For nearly all states, fiscal
2015 ends on June 30.
Alaska, Arizona, Kentucky, Massachusetts, Michigan, and Vermont
all expect to miss their revenue forecasts, according to the
report. New Mexico and Indiana are lagging slightly.
Some states, such as Virginia and Maryland, have lowered their
revenue forecasts, as well.
While Massachusetts is in a "stable financial situation," both
tax revenues and money from other sources are "coming in a
little under benchmark," the report found. The state said it
will have to cut some spending to balance its budget.
Vermont's fiscal situation is problematical, according to the
report. Income taxes are trailing forecasts that have already
been lowered and corporate taxes could dip after the sale of a
major company.
Meanwhile, Arizona is missing its budget's target by $71
million, even though the state's tax collections have grown
since last fiscal year. Kentucky faces ongoing pressures on both
revenues and expenditures, while Michigan is also seeing
spending come in lower than expected, according to the report.
Falling oil prices are also taking a toll on state revenue.
Alaska relies almost exclusively on oil and gas production for
its tax revenue, and its budget was drafted when oil prices were
nearly double current levels.
New Mexico expects its revenue will fall short both this fiscal
year and next due to the shrinking severance tax. It will tap
its large reserves to avoid cutting spending.
Kansas, Louisiana, Montana and Wyoming have cut their forecasts
for severance tax collections, as well.
Some states, though, could end the fiscal year better than
anticipated. Georgia, Oklahoma, Texas and Utah are all on track
to beat their forecasts.
(Reporting by Lisa Lambert; Editing by Lisa Shumaker)
[© 2014 Thomson Reuters. All rights
reserved.] Copyright 2014 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
 |
|
