PHOENIX — The Joint Legislative Budget Committee said Arizona wrapped up the budget year with a $266 million surplus.
State lawmakers were expecting to stare down a $132 million deficit. The big driver, according to the committee, was unexpectedly high income tax collections, especially from capital gains on investments.
June revenue collections were $58 million above forecast, mostly due to strong growth in the individual and corporate income tax categories.
Overall, Fiscal Year 2015 General Fund revenues were $322 million above the enacted
The report said based on the higher than projected revenue level and lower than expected spending, a rainy day fund transfer will no longer be needed to balance the budget.
That rainy day fund will remain at approximately $460 million but the committee said there was a potential hit on the horizon.
A ruling in favor of the plaintiffs in the K-12 litigation could add over $250 million in new spending.