announces Idaho year-end condition
Idaho State Controller Keith Johnson this week certified the balance of the states general fund as of June 30 (the close of the fiscal year) surpassed the threshold required to implement a 1 percent one-time employee salary increase
In accordance with House Bill 805, Controller Johnson certified that the unexpended, unencumbered balance of the General Fund is $98.4 million.
The general fund year-end balance exceeds policymakers original expectation of $72.2 million by $26.2 million or more than 36 percent higher than anticipated.
The Division of Financial Management reported last week that tax revenues would exceed projections by up to approximately $11.2 million, based on preliminary reports that address the three major general fund revenue sources individual income, corporate income and sales tax. That figure excluded statutorily required transfers, which pushed the year-end general fund balance beyond expectations even further.
These financial results for 2004 are good news, Johnson said and demonstrate both the resilience of Idahos economy and the improving national economy. Our good business climate helps Idaho businesses grow and provides good employment opportunities for Idahoans.
Yet Johnson urged caution, suggesting the very positive results do not guarantee that future revenue results will be as strong. The state will re-forecast expected revenues next month.
As important as these good results are for Idaho, it is equally important that we carefully consider future expected revenues and demand for government services, Johnson said. Moreover, our strong current financial position is essential as we prepare for the 1 percent sales tax sunset.
The 2003 Legislature enacted a temporary increase of 1 percent in the sales tax boosting it to 6 percent to counter a slow economy and shrinking revenue. Its intent was to allow the sales tax to revert automatically to 5 percent in 2005.