State revenue in July was up 1.2 percent compared with the same period last year and is ahead of projections made by the Revenue Estimating Conference (REC).

capitol domeGross general fund revenue receipts for July totaled $412.1 million — $4.7 million more than in July of last year.

The report from Gov. Chet Culver’s budget director, Dick Oshlo, noted that the figures do not include any adjustments for tax refunds or accruals, which could reduce available revenue. When Oshlo’s office last month used gross receipts to predict the depth of the Fiscal Year 2009 budget shortfall, many observers said the numbers were inaccurate, with Iowa State University economist David Swenson calling the practice “budgetary hocus pocus.”

“Government operates on net receipts,” not gross receipts, Swenson said at the time.

Personal income tax receipts totaled $196.3 million during July 2009, $12.8 million less than one-year ago. July sales/use tax receipts totaled $139.5 million, which represents an increase of $40.5 million or 40.9 percent compared to July 2008. Corporate income tax receipts were down 42.1 percent.

More than $19 million in refunds were issued by the Department of Revenue on a cash basis during July 2009 compared to $30 million issued July 2008.

“While our state and nation continue to face the challenge of a recession, these figures suggest we may be seeing the early signs of improvement in the economy,” Culver said in a statement. ““These latest figures, however, do not mean we can let down in our efforts to maintain Iowa’s balanced budget and help Iowans work our way out of this recession.”

The 1.2 percent growth represents a departure from REC estimates of an annual growth rate of  -0.1 percent.