Corbett projected that state revenues would come in faster, so he could then say they are slow

[JPZenger]

http://pennbpc.org/revenue-tracker-12-2011

The Corbett administration will soon announce their new proposed budget. In preparation for that announcement, a month ago they announced that state revenues were coming in hundreds of millions of dollars below expectations. That, they said, necessitated a budget freeze that gave them an excuse to freeze many programs, including another 5% of funding for state universities (on top of the earlier 20% cut).

Well, they cooked the numbers. The budget predicted that a higher percentage of total revenues would be received in the first 6 months than normally occurs. So, naturally, the revenues have come in slower than they forecasted.

Also, soon after taking office, Corbett on his own put into effect a depreciation rule that reduced state revenues from corporate taxes. Independent analysts said it would cost the state huge amounts of revenues, but the Corbett administration said they were wrong. Guess who was right?

The link has much more detail on this matter. Excerpts:

"Still, the revenue picture, in the short term, may not be as dire as that painted by the Corbett administration. The state is carrying a half a billion dollars in reserve that more than covers the current shortfall.

Changes to the revenue estimate itself may be playing a role in the shortfall, as well. The administration projected a larger share of revenue collections in the first half of the year and a smaller share in the second half than has been the case in recent fiscal years. That may have contributed to the midyear shortfall and could set the stage for a stronger revenue showing between now and June.

Actions taken by the Corbett administration and the General Assembly have also contributed to the current revenue shortfall. The decision last year to allow corporations to accelerate depreciation costs may be costing more than originally estimated, while doing little to improve the economic outlook. That, combined with the continued phase-out of the capital stock and franchise tax in 2012, will cost the state hundreds of millions of dollars in lost revenue."