BUDGET PROJECTION SHOWS SURPLUS

BOISE – Governor Jim Risch today unveiled the new forecast for incoming state revenues, which predict another surplus of over $200 million.  In January of each year legislative and state analysts provide economic forecasts from which state budgets are set.  The Governor’s Division of Financial Management provides an updated forecast each August.

This January, anticipated revenue was predicted at $2.3 billion for the fiscal year.  The updated projection predicts a surplus of $208 million when the state closes its books on June 30, 2007.  This surplus is on top of the $203 million extra money the state brought in for fiscal year 2006.

“Our economy continues to perform very well.  The projection of a surplus for this fiscal year is not overly surprising.  The growth trend has not slowed down in Idaho,” said Risch.  “Unemployment continues to be low and in fact, it hit the lowest level ever in our state at 3.2% earlier this year. This is a very good news for our legislators when they come to town next January.”

Economic data from the month of July supports the revised revenue estimate.  Revenue figures from July were $12.8 million over the January projections.  Individual income tax was up $3.6 million; corporate income tax beat projections by $5.3 million; and sales tax collections increased by $3.2 million.  Product and miscellaneous revenue were also up slightly.  July is the first month of fiscal year 2007.

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