Tax-collection news good, but shortfall still looming

taxrevenueIt’s a relief that the state’s tax collections for July came in on target, breaking a three-month streak of big shortfalls. The state collected $408.6 million in taxes last month, which was $1.6 million, or 0.4 percent, more than estimated. Over the three previous months the state had collected $334 million less than expected. Though the turnaround is good news, the state is still facing major budget problems. Even if tax revenues over the next 11 months meet the estimates, the state will use up nearly all of its cash reserves this fiscal year and will face a large budget shortfall next fiscal year.