Pulled down by a 67 percent drop in corporation and franchise taxes and an 8 percent dip in individual income tax cash receipts, state revenues for the fiscal year to date (July-September) have fallen 8 percent, or $140 million.
The state Department of the Treasury's “September 2010 Net Receipts Report” shows that to-date state revenues for 2010-2011 (July - September) are $1.707 billion, for a decrease of $140 million or 8 percent compared to fiscal year 2009-2010. Total revenues this time last year were $1.847 billion, which was $320 million less than the prior year, a decline of 15 percent.
Already the Jindal administration is facing the new reality that an additional $108 million will have to be cut from the current-year state budget after Louisiana finished the recently ended fiscal year (June 30) in the red. Lawmakers recently learned that deep cuts made last year were not enough to balance the budget. Last week Commissioner of Administration Paul Rainwater placed most of the deficit blame on corporate income tax during the 2009-10 fiscal year falling far below what was anticipated — a decline that has accelerated this year.
This means the state spent more money than it collected in taxes during the 2009-10 fiscal year, and the governor has until the end of this fiscal year to cut spending in order to make up for the deficit. Rainwater hopes to have a deficit-reduction plan ready by the end of the month.
Below is the breakdown of current fiscal year to-date receipts that are contributing to the 8 percent overall decline in state revenues so far this year:
•General sales tax cash receipts are $647 million, an increase of $14 million or 2 percent compared to last year. General sales tax cash receipts this time last year were $633 million, which was $122 million less than the prior year, a decrease of 16 percent.
•Individual income tax cash receipts are $621 million, a decrease of $51 million or 8 percent compared to last year. Individual income tax cash receipts this time last year were $672 million, which was $6 million less than the prior year, a decrease of 1 percent.
•General severance tax cash receipts are $185 million, a decrease of $10 million or 5 percent compared to last year. General severance tax cash receipts this time last year were $195 million, which was $150 million less than the prior year, a decrease of 43 percent.
•Corporation and franchise tax cash receipts are $45 million, a decrease of $91 million or 67 percent compared to last year. Corporation and franchise tax cash receipts this time last year were $136 million, which was $8 million less than the prior year, a decrease of 6 percent.
•Gasoline and special fuels tax cash receipts are $157 million, an increase of $5 million or 3 percent compared to last year. Gasoline and special fuels cash receipts this time last year were $152 million, which was $17 million less than the prior year, a decrease of 10 percent.
•Miscellaneous taxes cash receipts are $52 million, for a decrease of $7 million or 12 percent compared to last year. Miscellaneous taxes cash receipts this time last year were $59 million, which was $17 million less than the prior year, a decrease of 22 percent.
To view the full report, click here.
MAY 20 This post by blogger CB Forgotston draws parallels between Gov. Bobby Jindal and two individuals he probably doesn't want to be aligned with: President Obama and former governor Edwin Edwards. CB says Jindal's trying to jack up the debt ceiling (an Obama play, according to CB) and buy votes from GOP leges who normally wouldn't go for that (an Edwards play, CB says).
MAY 20 Here's a post in the Baptist Message from an alumnus of Louisiana College. The author, Larry Burgess, calls on the leadership of the private school to take care of some pressing problems. Physical plant issues are critical and unaddressed, some faculty make so little they need government health care, and there is an atmosphere that does not encourage honest discussion, he writes. It's time to get things back in order, he says.
MAY 20 This post in Gambit tells of a benefit concert scheduled to raise money for the 19 people shot during a Mother's Day second line on Frenchmen Street in NOLA. Among them was Gambit blogger Deb Cotton, who spoke frequently about violence in the city and reported on the city's second line culture. Gambit's foundation, along with other NOLA non-profits, also is selling t-shirts to raise money for the victims.
MAY 20 Blogger Robert Mann is critical of the personal interest some legislators take in their work here, sharing the comments one NOLA solon made in explaining his decision to vote against a bill that would require people to stop discriminating against female workers. His wife might lose some salary, so he was going to have to vote against the equal pay bill, Conrad Appel said. Appel and everyone who heard him should have been ashamed, but they weren't, and that's what is wrong in that building, Mann argues.
MAY 20 American Press columnist Jim Beam writes about the budget again here, urging kudos for the House and its efforts to try to fix the budget as opposed to passing on a flawed and messy rubber-stamped document as it usually does. The Senate already is poo-pooing the effort, but instead Senators should be trying to find a way to improve it as well, Beam argues. He also has some predictions in here from LABI and CABL.
MAY 20 Here's a link to the photo gallery from Tulane's graduation this past weekend. Dr. John and Allen Toussaint played together and received honorary degrees. The Dalai Lama was so entranced by their performance he got up from his seat and walked across the stage to stand next to them. He even participated in a second line with his own personal, saffron-colored umbrella. To the graduates, he urged them to think about creating a peaceful, hopeful life and society.
MAY 20 This Picayune story questions the rhetoric of NOLA officials who say the city, aside from having a "murder problem," is safe. The talking points generally are that the criminals are killing each other, but everything else is OK. The police chief there says that even Lafayette is more dangerous than NOLA. But crime experts interviewed here say that NOLA's numbers indicate one of two things: either people are so used to violence they don't report it, or somebody's "fudging the numbers."
MAY 20 The Advocate's Mark Ballard writes about some of the background maneuvering that took place during the development of budget alternatives in the Legislature. From Rep. Joel Robideaux being called a "tax and spend liberal" to robo-call influence, Ballard lets us in on some of the work that happens behind the scenes but usually doesn't make it into the Advocate's daily coverage of the session.
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