House Republican Appropria�ons Commi�ee

Economic Brief Rep. Bill Adolph, Republican Chairman June 2010

2009-10 Revenue Shortfall Grows to $1.23 Billion

as May Collections Fail to Meet Projections
General Fund revenue collec�ons fell short of es�mate for the 25th
consecu�ve month in May, driving the state’s year-to-date shor�all
to $1.23 Billion for fiscal year 2009-10. All told, May collec�ons were
nearly $125 Million below es�mate.

All four major revenue collec�on categories (see chart) were under
es�mate for the month. Each is far below es�mate for the year as
well.

The state’s two largest revenue-genera�ng taxes -- the Personal

Income Tax and the Sales and Use Tax -- con�nue to lag as collec�ons
were below es�mate by $46.6 Million and nearly $27 Million, EMPLOYMENT STATISTICS
respec�vely. April 2010 Monthly Change
Labor Force 6.470 Million +12,000
Corpora�on Taxes also came in more than $53.6 Million short for
the month, which has prompted these business taxes to reflect the Unemployment Rate 9.0% Even
largest year-to-date shor�all, as they are currently $484.6 Million
below projec�ons. Total Employment 5.886 Million +10,000

In comparison, the $24.6 Billion in revenues collected through May 12-Month Growth
2010, which includes $2 Billion-plus in reserve fund and revenue Total Employment -44,000
transfers, is less than what was collected through May 2007.
Unemployment Rate +1.2

General Fund Revenue REVENUE COLLECTIONS

May 2010
Year-to-Date Collections: -$1.23 Billion
Corpora�on Taxes Below Es�mate
$4,500,000,000 Estimated Collections
Actual Collections
$4,000,000,000 $85.8 Million -$53.6 Million
$3,500,000,000
Consump�on Taxes Below Es�mate
$3,000,000,000

$2,500,000,000 $772.3 Million -$23.7 Million

$2,000,000,000
All Other Taxes Below Es�mate
$1,500,000,000

$1,000,000,000 $777.0 Million -$43.2 Million

$500,000,000
Non-Tax Revenue Below Es�mate
$-

$169.5 Million -$4.4 Million

* State General Fund revenues noted above are based on the most recent end-of-month collections.

House Republican Appropriations Committee

(717) 787-1711 www.PABudget.com 245 Main Capitol