Pennsylvania's revenue picture for 2011-12 remains upbeat compared to just a few months ago, despite General Fund collections falling short of estimate in May. An updated revenue estimate released by the Independent Fiscal Office this week shows that the state will take in $626 million more in 2011-12 and 2012-13 than the Corbett administration anticipated in February. That figure does not count an additional $142 million in new revenue sources proposed by Governor Tom Corbett in his budget plan.
The latest IFO estimate is essentially unchanged from a May 1 report. Receipts for the current year are still expected to total $27.5 billion, more than $400 million higher than the Corbett administration projected in February but still less than initial 2011-12 estimates. The 2012-13 estimate dropped by $49 million, or 0.2%, from the May 1 estimate, and now stands at $28.6 billion.
Legislative budget negotiators said the latest IFO report doesn’t change 2012-13 budget talks much. The Senate enacted a budget last month that set spending at $27.65 billion, $517 million more than the Governor’s February budget proposal. The House later amended a number of line items in the Senate bill, but kept within the same budget framework as the Senate. Media reports indicate that House and Senate negotiators have proposed a budget that spends slightly more, but that Governor Corbett would like to see this figure pared back by $200 million to $250 million.
You can read more about the state's May revenue collections here.