Revenues are affected by economic changes and changes in federal and State policies. Tax base is a measure of the State’s ability to generate revenue. A decreasing tax base may force spending reductions, increased taxes, or both. Receipts are revenues that have been recorded on a cash basis.
See Appendix 3 for a breakdown of State receipts by major source for the past five State fiscal years.
Total State Receipts Have Increased Over the Past Five Years
- From 2014 to 2018:
- Total receipts increased 20.3 percent.
- Tax receipts increased 13.7 percent.
- Federal receipts increased 34.6 percent. The funding increase includes Medicaid funding under the Affordable Care Act.
Personal Income Tax and Consumer Tax Receipts Have Increased Over the Past Five Years
- Personal income tax and consumer (consumption and use) taxes:
- Accounted for 41.2 percent of 2018 receipts; and
- Have increased 17.5 percent since 2014.
- In 2018, personal income tax receipts—the State’s largest tax revenue source—increased 8.3 percent over the previous year.