State finishes fiscal ’12 in good shape

A first look at year-end state finances shows a strong finish to fiscal 2012, with state tax collections beating the projection made at the start of the year by about $500 million and with $160 million expected to be added to the state’s stabilization fund, bringing the year-end balance to an estimated $1.54 billion.

According to state documents, preliminary year-end accounting also reflects about $500 million in supplemental spending over the course of the year, some supported by federal reimbursements, reversions of unspent budget amounts, and other revenue and spending adjustments.

The final supplemental budget bill for the year, signed by the governor on Aug. 7, included $8.4 million to provide financial assistance to certain cities and towns to help defray costs resulting from the severe October 2011 snowstorm and $7.1 million to help with costs related to tropical storm Irene in August 2011.

Growth in Lottery revenues was particularly strong last year, with State Treasurer Steven Grossman announcing “record-breaking sales” for fiscal 2012 and the highest level of profits in 40 years.

In July, the treasurer released preliminary year-end Lottery estimates for net profits of $981 million – $87 million higher than the forecast at the beginning of the year and $30 million higher than the previous profit record, in fiscal 2006.

The treasurer called Lottery revenues the “single biggest source of unrestricted local aid” for the state’s 351 cities and towns.

Lottery revenue growth was due to “new game introductions, strategic marketing and prudent management,” Grossman said.