State revenue surplus for fiscal 2022 unofficially more than $400M
CONCORD — The state ends the 2022 fiscal year with a more than $400 million revenue surplus on a cash basis, according to figures released by the Department of Administrative Services late Wednesday afternoon.
The true revenue and budget surpluses will not be determined until the state’s finances are audited and announced, usually by the end of the calendar year.
For the 2022 fiscal year, state revenues totaled $3.23 billion, which is $262.5 million more than last fiscal year and $430.1 million more than budget writers estimated would be needed for a balanced budget.
The total includes $28.3 million from settlements, the largest $21.1 million from Centene, one of the three managed care companies administering the state’s Medicaid program.
For June the state produced $324.6 million, which is $23.7 million more than anticipated, and $4.1 million more than last June.
For much of the fiscal year, and June is no exception, business taxes supplied most of the additional money flowing into the state’s coffers.
During June business taxes produced $165.3 million, or a surplus of $21.8 million and $12.6 million more than last year.
According to the Dept. of Revenue Administration, the June increase is largely attributable to estimates, which were up 6 percent from fiscal 2021.
For the fiscal year, business taxes produced $1.21 billion, which is $250 million above estimates and $212.2 million more than last fiscal year.
The state’s second largest revenue producer, the rooms and meals tax, produced $24.7 million in June, $5.3 million more than estimates, but $7.6 million less than last June. Lawmakers lowered the rate of the tax in this biennium’s budget.
The DRA said the month’s activity showed a .2 percent increase in meals over the same month last year, and an 18.7 percent increase in hotels.
For the fiscal year, the levy produced $304.8 million, which is $66 million more than estimates, but $16.6 million less than fiscal 2021.
The interest and dividends tax, which begins phasing out this fiscal year, 2023, which began July 1, produced $17.7 million in June, which is below projections by $5.4 million, but $1.9 million more than a year ago.
For fiscal year 2022, the levy raised $156.4 million, which is $18.4 million more than estimates and $18.9 million more than in fiscal 2021.
The tobacco tax has been trending down this fiscal year and is returning to pre-pandemic levels, according to the DRA. Tobacco use increased during the pandemic.
For June the tax raised $20.4 million, which is $5.4 million below plan, and $5.8 million less than a year ago.
For fiscal 2022, the levy raised $231.7 million, which is below estimates by $15.8 million, and $19.3 million less than 2021.
The real estate transfer tax continued to produce more than estimates in June, but just barely at $18.7 million, which is $100,000 more than estimates and $500,000 less than a year ago.
According to information from the counties, sales were down 8.8 percent from a year ago, and values down .3 percent.
For fiscal 2022, the tax produced $230.5 million, which is $32.7 million more than estimates and $27.7 million more than fiscal 2021.
For June most other taxes were above estimates, with the exception of “other,” a number of small levies and fees, and the communications tax.
For the 2022 fiscal year, liquor revenues were off by $3.7 million, and the communications tax was $8.2 million less than anticipated.
Most other revenues exceeded estimates including lottery commission transfers which were $19 million in surplus in producing $147.5 million for education.
The Highway Fund, which suffered a significant shortfall at the beginning of the pandemic, produced $257.9 million for fiscal 2022, which is $7 million more than anticipated and about $16 million more than 2021.
The Fish and Game Fund, which benefited from the pandemic as people flocked to the outdoors, produced $14.6 million in fiscal 2022, which is $1.3 million more than estimates, but $1.2 million less than fiscal 2021.
A preliminary accrual of fiscal 2022 revenues is expected to be released by the end of the month, but the official figures will wait until the state audit is complete later this year.
Garry Rayno may be reached at firstname.lastname@example.org.