Maryland collected $183.7 more than expected in revenue during fiscal 2010, but the state still suffered its third worst revenue decline in more than 40 years, officials announced Wednesday.
“[The additional revenue] is a great sense of relief for us because the figures have been truly devastating,” Maryland Comptroller Peter Franchot told the Maryland Board of Public Works. “But we would have to grow a rate of 14 percent for four straight years to get back to where we were before recession … We simply have to face reality.”
Baseline revenues declined 3.7 percent overall, bringing revenues to $1.1 billion below the fiscal 2008 peak.
The unexpected millions will bring the state’s fund balance to $344 million for fiscal 2010. The money will be returned to the state’s rainy day fund, as required by state law.
“It’s not as though we now have an extra pot of a couple hundred million dollars to spend,” said state Treasurer Nancy Kopp. “Rolling into next year, that diminishes the projected deficit.”
Marylanders face a projected budget gap of $1.5 billion in fiscal 2012, according to O’Malley spokesman Shaun Adamec.
Individual and corporate income taxes, as well as sales and use taxes were the major drivers behind the uptick in collections.
Individual income taxes finished $109 million above projections, corporate income taxes finished $29 million ahead, and sales and use taxes gathered $41 million, according to the fiscal 2010 closeout reports.
