Compared with the March 2014 forecast, projections for general fund revenue rose 1.1 percent for the 2013-2014 fiscal year, which ends June 30. The forecast increased 1.3 percent for 2014-2015 fiscal year, which starts July 1.
The slowdown in general fund revenue growth this fiscal year was mostly from a one-time decline in income taxes on investment income. Continued economic growth is expected to generate higher general fund revenue growth next fiscal year.
The budget office said risks include geopolitical tensions, such as those in Russia and the Middle East, which could lead to an increase in energy prices. A fall in asset values and decline in the flow of credit, also pose risks.
Next fiscal year, growth in severance tax revenue and miscellaneous cash funds will be offset by a decline in hospital provider fee revenue and transportation-related cash funds.