Mitchell Adams, Massachusetts' revenue commissioner, said last week that although state tax revenues are up from May 1992, they are still below expectations.
For all of fiscal 1993, which ends on June 30, total tax revenues are estimated at $8.72 billion, up 5% from last year's total of $8.31 billion.
That figure is still $37 million to $42 million below the state's prediction.
According to a report from Adams' office, tax revenues for May 1993 totaled $787 million, compared to $725 million last May. Although that represents an increase of 8.5% from the previous year, income tax collections increased only 0.8%.
Adams said even though June is typically a stronger month than May for all collections, he does not think it will be possible to make up the difference between the actual and expected revenues for the year in one month.
"When the fiscal year is all done, I think we'll end up between $30 million and $40 million short of expectations," Adams said. "When you are predicting $9 billion worth of revenues, that's pretty close."
Finance officials in Gov. William F. Weld's administration said they were not overly concerned with the monthly revenue report.
Dominic Slowey, spokesman for the state's Department of Administration and Finance, said the revenue shortfall indicated by the report may be serious, but that it is not disastrous for the state economy.
The report may work out for the benefit of the state, Slowey said, as the fiscal 1994 budget is being debated in the Senate. "It may be enough to keep the Senate under control during debate," he said.
The $15.5 billion budget is expected to be taken up by the Senate this week or next.
