Income taxes are up in Arizona and are likely to continue that trend for the coming years, according to a report from the Joint Legislative Budget Committee.
The committee reported that revenues for the budget year ending June 30 were 10 percent higher than initial estimates. The largest increase came from higher individual income tax payments.
The committee is forecasting a $694 million dollar surplus at the end of the budget year. Directors are urging the legislature to be cautious with the money, saying they cannot guarantee it will be available year after year. They cited tax reforms, economic turmoil, the upcoming election and other elements as reasons for uncertainty.
The money will be best spent, said director Richard Stavneak, on one-time expenses and not on new or ongoing programs. He also urged state legislators to keep $50 million of the extra money in reserve.
Suggestions for using the money include public school repairs and new projects at state prisons.
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