Tennessee revenues $50M short in start of budget year

NASHVILLE, Tenn. (AP) -- Tennessee's tax collections have fallen far short of estimates in the first month of the budget year.

The general fund missed projections by about $50 million in August, mostly on worse-than-expected sales and corporate tax collections.

Corporate franchise and excise taxes came it about $26 million below the budgeted estimate of $41 million. Sales taxes came in at $21 million below projections.

State Finance Commissioner Dave Goetz says he hopes August's poor tax collections will be made up during the remainder of the budget year.

Lawmakers were forced to cut nearly a half-billion dollars for this year's spending plan because of an economic downturn.

(Copyright 2008 by The Associated Press. All Rights Reserved.)

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