Idaho ends year with $223.8 million surplus

BOISE – State officials are reporting a rosy end to fiscal year 2008, despite a slowdown in sales tax collections and revenue projections that fell short of expectations.

State Controller Donna Jones says the state closed its books with a $223.8 million surplus in the general fund for the fiscal year that ended June 30.

Department officials attribute the one-time surplus to carry-over of the $247 million surplus in the general fund from the previous fiscal year, conservative spending in an economic downturn and efficient operation by state agencies.

“Most of the end-of-fiscal-year surplus in the general fund is money the state was planning on but which the Legislature chose not to spend last year,” said Wayne Hammon, state budget director. “It is our insurance policy against worsening economic conditions in coming months.”

Revenue streams that flow into the state’s general fund include sales tax, individual and corporate income tax and other miscellaneous revenue, bringing in more than $2.9 billion overall for the year and accounting for nearly 40 percent of the state’s funding.

The year-end results offered a little good news after months of economic gloom.

In March, state financial analysts reported declines in home, auto and retail spending, sending sales tax receipts below forecasts. The state reported that sales tax receipts dropped 3.7 percent in February from the same period in 2007.

In June, the state reported more evidence of consumers tightening their wallets. Officials say June sales tax receipts totaled $95 million, down from the $101 million generated in June 2007.

Anticipation that revenue declines would continue also changed the dynamics of the 2008 Legislature, as gloomy forecasts for 2009 prompted Gov. Butch Otter to scale back some of his more ambitious budget proposals and lawmakers looked for ways to cut costs even more.

“We do know that revenue was soft … and it looks like it will be soft for a while going forward,” said Brad Hoaglun, chief deputy controller. “Certainly this cushion helps, but they (lawmakers) are going to have tough decisions again when they come back to town next year.”

During the last 12 months, individual income tax generated $1.4 billion, sales tax collections topped $1.1 billion and the take from corporate income taxes was $189.7 million, according to the controller’s figures.