Ohio tax revenues continued to come in below estimates in May but budget officials say the state will still finish the fiscal year in the black.
But another month of revenues lagging estimates, which were already adjusted downward last year, is not good news for state lawmakers revising the next two-year state budget bill.
State tax revenues came in $67 million, or 3.3 percent, under estimates in May. Most of the shortfall — $88.7 million — came from lower personal income tax revenue collections.
But higher than expected sales tax and commercial activity tax collections helped offset the slump in personal income tax revenues.
Total tax revenues are $840.7 million below estimates since the fiscal year began in July, falling short in 10 out of the past 11 months.
But Ohio Office of Budget and Management Director Tim Keen has said the state will be able to meet all its financial obligations for the rest of this fiscal year, which ends June 30. That’s mostly because of underspending on Medicaid, the joint state and federal health insurance program for poor and disabled Ohioans.
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