Drop in State Revenue Blamed On Computer UpdateBy Jeffrey Hess | Published 15 Oct 2012 04:00pm |
A computer update is likely to blame for a report showing a nearly 40-million dollar decline in state tax collection in September compared to last year. MPB's Jeffrey Hess reports this is the second year updates to the state's decades old computer system have affected revenue reports.
To get the new system online, the department of Revenue had to transfer 1-and-a-half million state income taxpayer files, which required them to shut off their computers for several days late last month.
That shut down lead to the appearance of an economic slowdown.
However, department spokeswoman Kathy Waterbury says transfers to the state's general fund did not post and therefore were not counted in the report.
"So we wait until the returns have posted to the system before we recognize that revenue. The revenue is in the bank. The money is in the state treasury all along. It is just recognizing it and that is just an accounting function," Waterbury said.
Waterbury says the revenue will be counted in October's report.
This is the second of three years that the department will temporarily shut down to transfer records from its 40 year old computer system, and onto an updated service.
BACK TO TOP
CommentsMPB will not tolerate obscenities, threats/personal attacks, hate speech, material that is ethnically or racially offensive, abusive comments, comments off topic and spam, to name a few. You can see a complete list of the MPB guidelines by viewing our terms of service. If you spot a comment you think violates these guidelines, report it to the moderators by clicking "x" next to the comment, then "report”. MPB reserves the right to adjust these guidelines. If you have a suggestion, please contact us.
BACK TO TOP