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Arizona is in the money after years of budget deficits

(KTAR File Photo)

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
forecast.

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.