The Institute's Staff

Maryland Budget & Tax Policy Institute

Budget Update

May 13, 2009

April Revenues Down 17%

Maryland Comptroller Peter Franchot today reported that general fund revenues for April 2009 – reflecting April 15 income tax returns – were 17% below 2008 levels.

The comptroller reports that income tax revenues for the state’s general fund were 17% below last April.  The fiscal year to date income tax revenues (July 2008 through April 2009) are 5% below the same period in the previous year.  The Comptroller attributes most of the downfall to final tax payments with April returns and to income taxes on fiduciary accounts.  These components of the income tax could finish the year $130 million below the estimates made in March.

Corporation income taxes, sales taxes, and lottery earnings also all fell short of last year’s levels.

For the fiscal year to date, state general fund revenues in total are 3.5% behind last year’s pace, or $350 million less through 10 months.

The legislature’s final actions on the budget leaves an estimated $441 million in the state’s general fund balance at the end of this fiscal year. So the state does not need to cut budgets or take other actions during the final two months of this fiscal year to remain in the black.  However, if these trends persist, more budget balancing actions will be needed for fiscal year 2010, which runs from July 2009 through June 2010.

>>link to Comptroller's revenue report

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