October 15, 2001
Source: Office of Economic & Demographic Research
The Revenue Estimating Conference convened on October 15, 2001 to reevaluate the revenue estimates for the current and upcoming fiscal years. The new estimate of General Revenue collections for the current fiscal year was reduced by $644.3 million. This reduction, when combined with the reduction from the estimating conference held September 15, amounts to $1317.5 million less than the original estimate used to develop this year's appropriations act, a 6.6% reduction. The Conference also reduced the revenue estimate for fiscal year 2002-03 by $783.5 million. This reduction, in addition to the September reduction, brings the new General Revenue estimate for FY 2002-03 to $19492.5 million.
With regard to the combined General Revenue/Working Capital Fund fiscal position for the current fiscal year, the new estimate, when combined with other funds available, leaves a yearend projected deficit of $928.5 million. This position does not take into account reserve funds of $940.9 million in the Budget Stabilization Fund. The Legislature will be meeting in special session beginning October 22 to address the deficit situation. For the 2002-03 fiscal year, the new estimate of total funds available is $19595.2 million, or $695.0 million less than the original FY01-02 appropriation. The combined General Revenue/Working Capital Fund financial outlook statement incorporates all of the above changes, and will be revised in the future to incorporate the special session actions which are implemented to address the revenue shortfall.
2001 Session Law Changes- There were two significant legislative actions affecting tax laws. The major change was a reduction in the intangibles tax rate. In addition, the sales tax holiday on clothing was passed for another year, with an expansion to include school supplies. A table showing the amounts of the tax law changes with regard to General Revenue is available.