From Rep. Sharon Steckman:
The 2012 state fiscal year ended on June 30th with revenue collections exceeding estimates by more than $156 million. State revenue growth was up 6.8%, collecting just over $6.122 billion in revenue for the year and increasing $290 million from the previous fiscal year.
The extra revenue growth will add to the budget surplus projected for fiscal year 2012. While the State won’t officially close the books on the fiscal year until October, these additional revenues are expected to boost the state’s ending balance from the estimated $430 million to possibly as much as $586 million. When the ending balance is combined with the state’s $595 million reserve funds, the state’s surplus will total over $1.18 billion.
Better than expected revenue growth is one indicator that the economy continues to improve. Iowa’s nonfarm employment through the end of May was up 14,800 from the same period a year ago. However, Iowa’s 12-month average employment still lags behind the employment peak reached in October of 2008 by 42,400, which means there is still more that can be done to get Iowans back to work.
Personal income taxes, sales and use taxes, and corporate income taxes were the main sources of the better than estimated collection of revenues. Personal income tax receipts grew $172.6 million for the year, an increase of 5% and exceeding the 4.5% estimate. Sales and use tax receipts grew $123.9 million, an increase of 5.2% and exceeding the 3.2% estimate. Corporate income tax receipts grew $126.2 million, an increase of 32% and exceeding the 25.5% estimate.
