State revenue drop leads to $74M in spending cuts

SBJ Staff

Posted online February 3, 2010 | 9:58 am

The continued drop-off in state general revenue collections has led to additional spending restrictions this year, the state budget office said Tuesday.

Through seven months of fiscal 2010, general revenue collections total $3.88 billion, down 12.5 percent compared to the same period in fiscal 2009.

Collections for January totaled $561.2 million, a 22.4 percent decrease from January 2009.

The revenue shortage is leading to additional spending cuts of $73.8 million, to ensure the budget stays balanced for the remainder of the fiscal year, according to a news release.

State salaries and operating expenses will be cut by $2.9 million. The cut should impact about 120 positions, some through attrition, according to the release.

The biggest chunk of the cuts comes from the state Office of Homeland Security's communications interoperability efforts. The state is cutting $29.2 million from its general revenue funding for that project, which assists in agencies' ability to communicate with each other; other state and federal funding sources picking up the difference.

The state also is cutting $24.2 million from matching funds for its rural broadband initiative, leaving $5.8 million in place for that effort.

General revenue collections in January were down in individual income taxes, sales and use taxes, and corporate income taxes, with refunds up for the month.[[In-content Ad]]