April tax revenue boosts Idaho economy

BOISE (AP) - The state collected $377 million in tax revenue in April, topping the month's forecast by $14 million and adding to optimism among economists that Idaho's economy is recovering from the deepest recession since the Great Depression.

April is the most important month for tax collections, so robust receipts mean the state is on track to top forecasts for the full 2011 fiscal year that ends June 30.

The latest collections leave Idaho with about $74.2 million more in general fund revenue than forecasts from just a few months ago.

Most of that additional money is due to go to public schools, based on bills the 2011 Legislature passed.

"Obviously this is great news," Wayne Hammon, Gov. Butch Otter's budget chief, said Friday. "If these strong returns continue through the end of the fiscal year, we should have some extra money for education. But we still have two months to go, so we'll continue to be prudent and watch the numbers closely."

Derek Santos, a state economist, said withholding collections were particularly strong, at $9.3 million above expectations.

"This strength suggests employment growth is more robust than was previously thought," Santos said.

Idaho's unemployment rate had remained unchanged at 9.7 percent in March, but the U.S. Bureau of Labor Statistics said last month that the number of people who were at work grew faster than the number of people looking for work for the first time in four years, a sign of improvement.