Governor Otter Says State Budget Surplus Unlikely

As we reported earlier today, the Division of Financial Management released its monthly state revenue report, which shows November tax collections didn’t meet expectations.  Collections were $5.4 million below DFM’s monthly forecast.

State of Idaho

Idaho Governor C.L. "Butch" Otter

In advance of this news, Governor C.L. “Butch” Otter sent this letter to his Cabinet, warning any projected budget surplus isn’t likely.

“Unfortunately, actual revenues once again are significantly lower than projections. For November, collections were $5.4 million short of the projection, for a cumulative year-to-date shortfall of $16.2 million. In addition, even the lower-than-projected November figure was bolstered by one-time funds from the unclaimed property account. Without this unanticipated $5.8 million, the year-to-date shortfall would be about $22 million and all five categories of General Fund revenue would have been negative for the month.” – Governor Otter

It’s important to note the state is not currently facing a $16.2 million shortfall, as reported here.  The legislature’s chief budget analyst, Cathy Holland-Smith, says that $16.2 million figure is the difference between DFM’s year-to-date revenue projection and actual money in the bank.  The state won’t know if its finances are in the red or the black until end of the fiscal year (June 2012).