Combined February revenue to the General and Education Trust Funds was above the State Revenue Planby $22.8 million (21.2 percent), leaving the total State Fiscal Year 2025 revenue deficit at $16.2 million (1.1 percent) below planned amounts.
While declines in business tax receipts are the primary reason for the current shortfall, they are not the only cause, nor are they the most recent. Two revenue sources generated the equivalent of 99 percent of the estimated revenue surplus in SFY 2024, and both are disappearing.
State revenues slipped further behind expectations in November as key sources the State had been relying on for revenue growth fell behind the prior fiscal year’s receipts. Lower business tax receipts added to the year-to-date revenue deficit, with revenues thus far this fiscal year $76.4 million (20.9 percent) behind last year’s combined business tax collections.