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April 18, 2011

 

DiNapoli: Tax Collections Ended Year $926 Million Below Original Financial Plan Projections

Revenue Collections $1.2 Billion Below March 2011 Projections

All Funds tax collections were $926.3 million below initial projections included in the SFY 2010-11 Enacted State Budget, but slightly above projections made March 3, according to State Comptroller Thomas P. DiNapoli's March Cash Report.  The General Fund ended the fiscal year $19.1 million over March 3 projections.

All Funds revenue collections for state fiscal year 2010-11 were $1.2 billion below Financial Plan projections updated March 3, which were offset by All Funds spending that was $1.3 billion less than March 3 projections.  Lower collections were primarily due to lower than anticipated federal receipts and miscellaneous receipts while spending was down primarily due to lower than projected spending on local assistance grants and capital projects.  

“The Enacted Budget took significant steps to address the state’s chronic structural deficit with mostly recurring actions rather than the temporary resources used last year,” DiNapoli said. “However, some risks remain. Revenue lagged projections throughout the year, and there are still significant shortfalls in certain areas, such as business taxes.  It is important that the Enacted Budget Financial Plan reflect realistic projections. The state’s persistently slim financial margins necessitate close monitoring and attentive cash management.”  

All Funds receipts ended the year at $133.3 billion, 5.2 percent higher than SFY 2009-10.  All Funds spending increased 6.3 percent to $134.8 billion.  All Funds receipts were projected to increase 6 percent in the Enacted Budget Financial Plan, released in August 2010, compared to projected spending growth of 7.1 percent.
 table

Other findings in the March Cash Report include:

  • General Fund receipts (including transfers from other funds) of $54.4 billion through March 31 were 3.6 percent, or $1.9 billion, higher than collections from the same period last year. General Fund receipts were $343.5 million higher than updated projections from March.
  • General Fund tax collections totaled $39.2 billion, an increase of $2.1 billion, or 5.8 percent, from last year. Tax collections were $17.2 million higher than Financial Plan projections released March 3 but $726.8 million below initial projections included with the Enacted Budget.
  • General Fund Personal Income Tax collections through March 31 totaled $23.9 billion and grew 5.5 percent, or $1.2 billion, from last year.  Personal Income Tax collections were $344.6 million higher than updated projections.  Withholding collections have grown 6.1 percent year-to-date which exceeded the updated year-end projection of 4.3 percent.  Estimated payments grew 7.8 percent, which is slightly below the latest year-end projection of 8 percent.  
  • Consumption and use taxes increased 8.8 percent to nearly $8.8 billion in the General Fund, which is $19.7 million higher than updated projections.  This level of growth is higher than the year-end projection of 8.5 percent.  Sales tax grew 9.2 percent in SFY 2010-11, higher than year-end projected growth of 8.9 percent.
  • General Fund business tax collections of $5.3 billion were $91.7 million, or 1.7 percent, below collections for SFY 2009-10, which is $385.1 million below updated projections.
  • All Funds receipts of $133.3 billion were 5.2 percent, or $6.6 billion, higher than last year, primarily because of federal receipts, which increased $3.8 billion, or 8.3 percent.  All Funds receipts were $1.2 billion lower than Financial Plan projections, primarily because of miscellaneous receipts ($533.9 million below plan) and federal receipts ($709.4 million below plan).
  • All Funds tax collections of $60.9 billion increased by 5.6 percent, or $3.2 billion, from last year, primarily from personal income tax collections (up $1.5 billion), consumption and use taxes (up $1.4 billion) and other taxes (up $570.3 million).  All Funds Tax collections were $76.7 million over Financial Plan projections from March 3 but $926.3 million below initial projections included with the Enacted Budget.
  • General Fund spending (including transfers to other funds) of $55.4 billion is an increase of 6.1 percent, or $3.2 billion from SFY 2009-10.  Local assistance increased nearly $3 billion (primarily from Medicaid and education).  This is offset by departmental operations, which is down 7.1 percent or $613.8 million from last year.  General Fund spending was $324.1 million below updated Financial Plan projections.
  • All Governmental Funds spending increased 6.3 percent, or $7.9 billion, which is $1.3 billion below updated projections.  FY 2010-11's spending increase is largely the result of Medicaid and school aid payments that were not made in FY 2009-10 and deferred until the first quarter of the FY 2010-11.  Debt service increased 13.2 percent while capital spending declined 1.6 percent. Spending for departmental operations declined 1.8 percent or $346 million.
  • Reported receipts include $500 million in tax refunds initially intended to be paid in SFY 2009-10 that were delayed to SFY 2010-11 and spending includes $2.06 billion in school aid payments that were delayed from the last quarter of SFY 2009-10 to the first quarter of SFY 2010-11.

The state’s finances are generally broken down by two main categories: General Fund and All Funds. The General Fund is the major operating fund of the state and accounts for all receipts that are not required by law to be deposited into another fund. All Governmental Funds includes General, Special Revenue, Debt Service and Capital Projects funds, as well as funds from the federal government.

To view the March Cash Report, visit: http://www.osc.state.ny.us/finance/finreports/cash/monthly/march11.pdf


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