/ Modified jul 24, 2012 9 a.m.

State Revenues Rise Above Expectations

Combined with spending cuts, surplus totals $379M

By The Associated Press

Arizona's post-recession budget picture continues to brighten as the state begins a new fiscal year in better shape than had been expected.

The Joint Legislative Budget Committee reported that tax revenue was $145 million more than anticipated during the fiscal year that ended June 30 and spending was $112 million less than expected.

The revenue figure was 6.3 percent higher than the forecast and included revenue growth above 6 percent in all three major categories -- sales tax, income tax and property tax.

The report estimated that the 2011-12 fiscal year ending state budget balance will be $379 million. That includes $257 million from the higher-than-forecast revenues and low spending, but it does not include $450 million that the Legislature set aside as a rainy day fund for the new fiscal year.

The Joint Legislative Budget Committee further projected a significant surplus for the 2012-13 fiscal year and said the two-year surplus will help offset a projected deficit in the 2014-15 fiscal year.

That deficit projection is driven largely by scheduled expiration in June 2013 of the one-cent education sales tax, although a proposed ballot initiative for this fall would extend it permanently if approved by voters.

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