State total revenues rise 2.5%, projected shortfall now $92M

Associated Press

A surge in state tax collections in June pushed total revenues in the just-ended fiscal year to about 2.5 percent over the year before, Tax Director Kurt Kawafuchi said yesterday.

It means the $152 million revenue shortfall projected by the Lingle administration in the two-year, $7.5 billion general fund budget drops to about $92 million.

After accounting for several technical factors, the income during June was 15.3 percent over June of last year, Kawafuchi said.

The state Council on Revenues in May forecast revenue growth of 1.8 percent for the year ending June 30.

With growth coming in at 2.5 percent, it means about $20 million more, and over the three-year period would cut the projected revenue shortfall by $60 million.

The governor's office said that Gov. Linda Lingle probably won't relax a current round of spending restrictions until the Council on Revenues meets in September to review its forecast.

Gov. Linda Lingle used the projected $152 million shortfall as justification for vetoing several legislative measures, including one trimming $3.6 million in "rainy day fund" grants to 17 nonprofit social service and health agencies.

Lawmakers on Tuesday overrode her line-item veto of those cuts, but she still has authority to restrict that spending.