Stronger-than-expected March revenue numbers mean smaller projected state deficit
Administrative Services Commissioner Linda Hodgdon outlines her budget to governor-elect Maggie Hassan on on the first of three days of discussions on the state's 2013 budget in the Legislative Office Building; Monday, November 26, 2012. (ALEXANDER COHN / Monitor Staff)
State revenues rebounded in March, with business and other taxes bringing in $26.6 million more than officials had expected.
As of the end of February, the state had collected $41.1 million less in revenue than it had expected for fiscal
2013, creating a potential deficit for the fiscal year that ends June 30. By March 31, that shortfall was down to $14.5 million.
“It’s a good month. . . . I’m very pleased,” said Linda Hodgdon, commissioner of the state Department of Administrative Services. “I’m hoping we see the same thing in April.”
In all, according to figures released yesterday, the state collected $616.1 million in March, 4.5 percent more than the expected revenue of $589.5 million.
March and April are typically big months for business tax revenues, and the
business profits and business enterprise taxes brought in $98 million in March,
$16.8 million more than planned. Hodgdon said that reflects the improving economy.
The big problem remains the state’s Medicaid Enhancement Tax, which is paid by hospitals and is still $34 million below plan for the year.
“We’re almost $20 million ahead on the other taxes,” Hodgdon said, who noted the stronger-than-expected March numbers are “certainly very helpful” in addressing the expected deficit for fiscal 2013.
(Ben Leubsdorf can be reached at 369-3307 or
email@example.com or on Twitter @BenLeubsdorf.)