The Office of Legislative Services (OLS) projects that fiscal 2010 and fiscal 2011 revenues will be $249.4 million less than the estimates in the Governor’s proposed fiscal 2011 budget. For fiscal 2010, the OLS revenues are $81.7 million below the Governor’s estimates, and OLS’s fiscal 2011 estimates are $167.7 million below the Governor’s projections. These differences are relatively minor, representing less than 1 percent of the budget. 

The biggest reason for the lower estimate is the underperformance of the sales tax. For fiscal years 2010 and 2011, OLS projects $313 million less than the Governor’s estimates.

For the income tax, OLS anticipates $124 million more than the Governor’s estimate for fiscal 2010 and 2011.

For the Corporate Business Tax, while OLS’ estimate for fiscal 2010 is $44 million below the Governor’s estimate, OLS’ fiscal 2011 estimate is $55 million above that of the Governor.

The Senate and Assembly Budget Committees will begin hearings next week on the impact of the proposed budget on state departments.

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