FLICKR/ CREATIVE COMMONS" title="THE R.I. DEPARTMENT OF REVENUE reported Thursday that the state's general revenue collections fell 6 percent short of projections in April, but Director of Revenue Rosemary Booth Gallogly said the month's collections still improved over March, which saw a shortfall of 8.3 percent. / COURTESY JACK NEWTON, VIA FLICKR/ CREATIVE COMMONS"/>PROVIDENCE – The R.I. Department of Revenue collected $20.7 million less than expected in April, resulting in a 6 percent monthly total general revenue shortfall compared with the state’s original revenue projections, the department reported Thursday.
The revenue department took in $326 million in April, when it expected to collect $346 million. The shortfall was mainly the result of a 15.7 percent drop in personal income tax revenue compared with state expectations. Rhode Island collected $153 million in personal income tax last month, $28.3 million less than the $181 million estimate established at the state’s November 2013 Revenue Estimating Conference.
The personal income tax revenue loss, along with a 3.7 percent decline in lottery transfer revenue, offset gains in sales and use tax collections, departmental receipts and all other general revenue sources, which exceeded original projections by 2.9 percent, 6.4 percent and 15.1 percent, respectively.
R.I. Director of Revenue Rosemary Booth Gallogly said in the report that while the April results were “mixed,” they represented an improvement over the March revenue assessment, when the state took in $27.6 million, or 8.3 percent, less than expected.
The fiscal year-to-date revenue data showed a less severe shortfall than the April data. Since July 1, 2013, the state has collected $2.55 billion, $22 million (or nine-tenths of a percent) less than the $2.57 billion projected for the 10-month period.
Gallogly noted that the $22 million year-to-date discrepancy in comparison with expectations is primarily due to a $25 million shortfall in personal income tax payments, reflecting the monthly April figures.
“Like many states, particularly in the Northeast, final personal income tax payments did not meet expectations,” said Gallogly. “Absent the strength in personal income withholding tax payments, the shortfall would be significantly worse.”
Lottery transfer revenue has shown the largest shortfall in the 10 months between July and April, bringing in $281 million, or $10.8 million less than the $292 million anticipated, a difference of 3.7 percent. The sales and use tax drew one-tenths of a percent less than projected for the fiscal year-to-date, but all other revenue sources have remained on track with or slightly exceeded the state’s estimates.
A fiscal year shortfall in general revenue would mean less money for state legislators to work with when drawing up the fiscal year 2015 budget. Gov. Lincoln D. Chafee’s proposed $8.5 billion budget, unveiled in January, calls for a $104.3 million increase in state general revenue spending.
