PHOENIX — An unexpected surge in corporate and individual income tax
payments last month was expected to wipe out the need for a $132 million transfer
from Arizona’s rainy day fund to balance the current budget.
A new legislative budget analyst report showed income tax revenue increased 30
percent last month compared to a year earlier.
That could not only preserve the
entire $464 million savings account but give lawmakers some budget breathing
room next year.
The report shows revenue is running $228 million above forecasts, but more tax
refunds are expected.
Senate Appropriations Committee Chairman Don Shooter said
Tuesday that after refunds and eliminating the rainy-day fund raid he expects
the state will have $65 million more than expected.
The enacted budget for the year beginning July 1 is $9.1 billion.