Wednesday, November 29, 2023

Interim Report: Joint Committee on Government and Finance

The Joint Committee on Government and Finance met this afternoon and received an update on broadband in the state and an overview of general revenue.

Currently, there are five broadband projects under construction with two projects completed. Seven more projects will start construction by the end of the year. The total number of address passed is at 1,500. Currently, there are 1,300 targeted addresses, which have no broadband. With passing addresses included, the total number served is 2,000 addresses. You can view the ARPA Broadband project on the dashboard.

Revenue reported that at the end of the state’s first quarter, personal income tax revenue was equal to the number this time last year. This is impressive because of the income tax cut. Severance tax numbers are low because the price of production is low. Production numbers are up but the price is low. Severance tax revenue is down 73.4 percent from a year ago. Total revenues are down 7.1 percent, but considering the tax cut this percentage isn’t too low. October revenue is almost flat with the state being a couple of million under budget. The 2024 tax cut will be the property tax refunds. In 2025, the trigger formula will be put in place. The 2024 general revenue without severance tax will be compared to the 2019 general revenue without severance tax, adjusted for inflation to determine if there will be another tax cut. If there is growth in revenue, then there can be a cut of up to 10 percent. The department is in the process of constructing the Governor’s FY2025 budget and plans to have it ready by mid-December.

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