DiNapoli Releases July 2008 Cash Report
Business Taxes Down, Personal Income Taxes Up
State Comptroller Thomas P. DiNapoli released the July 2008 Cash Report. Total state spending through July was $36.9 billion, or 9.3 percent higher than the same period last year but $403.6 million below recent Financial Plan projections. Revenues grew $3.2 billion, or 8.9 percent, compared to last year due to growth in personal income tax collections and federal receipts. General Fund business taxes fell $312 million compared to this time last year, and were $77 million below updated Financial Plan projections.
“On the face of things, the numbers seem to be sending contradictory messages,” DiNapoli said. “There’s an undercurrent of economic distress that continues to cause volatility and will likely hit New York harder in the months to come. The growth in personal income tax collections probably won’t continue. Next year’s budget will be a very difficult one. We need to focus on fixing things now before they get even further out of hand.”
Findings in the report:
- Medicaid and Education Spending Up. General Fund spending, including transfers, was $19.1 billion ― $1.5 billion or 8.5 percent ― higher than last year, primarily due to increased spending in education and Medicaid. General Fund spending was $250 million below Financial Plan projections released July 30. Spending for State operations in the General Fund was down $408.7 million because the state shifted spending from other funds.
- All Funds Spending Up. All Governmental Funds spending through July 31 of $36.9 billion was $3.1 billion, or 9.3 percent, more than 2007-08 figures through July 31, 2007, again primarily due to increased spending for Medicaid and education. State operations spending in All Governmental Funds was up $609.2 million primarily due to retroactive pay raises to state employees.
- Personal Income Taxes Up. General Fund receipts, including transfers, totaled $20.6 billion which was $2.6 billion, or 14.3 percent higher, than last year and $103.5 million over Financial Plan projections. This increase is primarily due to growth in personal income tax collections, which totaled $10.6 billion through July. DiNapoli cautions that this growth is primarily due to the settlement of the 2007 income tax liabilities and is unlikely to continue.
- Business Taxes Fall Again. General Fund business tax revenues were $1.1 billion through July, or $312 million lower than this time last year, and $77 million below Financial Plan projections.
- Other Revenues Slightly Up. In addition, other General Fund taxes were $610.8 million, or $242.6 million more than July 2007 levels, primarily due to increased collections in Estate and Gift taxes. All Funds receipts through July grew $3.2 billion, or 8.9 percent, over July 2007 levels.
As a result of higher than anticipated revenue collections and lower than projected spending, the General Fund closing balance is $352.9 million over Financial Plan projections.
Click here a copy of the report