Governor Announces Year-End Surplus

GOVERNOR ANNOUNCES YEAR-END SURPLUS

BOISE - Governor Jim Risch revealed today that preliminary fiscal year-end state revenue figures show a surplus of $199.9 million. Revenue for June showed a $25.8 million increase over projections.

"Our fiscal year for Idaho ended on an extremely strong note. To have $200 million in budget surplus shows that we have a robust economy and we look forward to the continuation of this strong economy. In my humble opinion, the state should not sit on this surplus and count the money. There are serious problems with property taxes in several areas of this state, and I call on our legislators to use this money in a constructive manner to resolve this issue," said Risch.

The preliminary year-end figures show strong collections in all three of the state's major tax categories. Individual income tax collections grew by 11.8% for the fiscal year; corporate income taxes collected were up by 39.8%; and sales tax revenue increased by 15%. The revenue increases were approximately double of what was projected for the fiscal year.

Increases in the corporate income tax collection reflect a hot business climate, along with new companies moving to Idaho and expansion of existing businesses already in the state.

The income tax collection shows the strong growth in Idaho wages and salaries, which grew 6.5% from the first quarter of 2005 to the first quarter of 2006. In comparison, U.S. wage and salary payments were up 4.2%.

Current projections for fiscal year 2007 forecast 4.7% revenue growth over FY 2006. This was a revised projection made in January of this year. In August the projection for FY07 will be updated and released.

http://gov.idaho.gov/mediacenter/press/pr2006/prjuly06/pr_066.html