Muchow said one bright spot in the revenue report was a large surplus in state severance tax collections from coal and natural gas operations in the state.
The $45.8 million in severance taxes collected last month were $6.8 million greater than expectations and 33 percent more than the amount collected last July.
"Severance tax collections from natural gas were on the rise due to both higher prices and higher production and even coal collections were a bit better than expected," Muchow said.
Muchow also noted a portion of the July collections seemed to balance out a steep miss in June collections, when receipts fell by nearly 22 percent for the month.
In other areas, the $105.8 million in consumer sales taxes collected last month were about $800,000 greater than forecasts, while the $7.8 million in corporate income taxes collected were $1.7 million greater than expectations.
While the first month of the fiscal year started off with an overall shortfall, Muchow said he expects collections in later months to make up the gap.
"Collection trends are expected to improve during the remaining months of this fiscal year," he said.
Contact writer Jared Hunt at busin...@dailymail.com or 304-348-4836.