ANNAPOLIS, MD (August 28, 2006)-Comptroller William Donald Schaefer today reported that the state closed fiscal year 2006 with a surplus of $172.8 million. The Board of Revenue Estimates closed out its fiscal year by forecasting general fund revenues to within 0.4 percent of perfection. For the year, general fund revenues totaled nearly $12.4 billion, an increase of 7.3 percent over FY 2005. Fiscal year 2005 had seen growth of 13.2 percent over FY 2004.
"Growth has clearly slowed," said Comptroller Schaefer, "And you're going to get the same message from me that you've had all along. We had better plan responsibly for the future. We have a lot of demands on our budget. Now is not the time for overreaching fiscal expenditures."
Income tax revenue grew by 14.2 percent in fiscal year 2005, but grew by 10.5 percent in FY 2006. Sales and use tax revenue maintained steady growth. These two sources of revenue account for 82 percent of the state's general fund.
"The Board of Revenue Estimates, well respected in the financial community, is most reliable and credible. In good and bad times, its projections are invaluable," said Treasurer Nancy K. Kopp.
Other sources of tax revenue increased 4.5 percent from fiscal year 2005 to FY 2006, and include interest on investments, state lottery receipts, death tax revenue and tobacco taxes.
State law requires the governor to appropriate all surplus funds that exceed $10 million into the Revenue Stabilization Account, also known as the "Rainy Day" fund. The fund was created in 1986 to supplement state revenues during rough or uncertain economic times.
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CONTACT:
Michael D. Golden, 410-260-7305
Kevin P. Kane, 410-260-7578
