DiNapoli Releases July Cash Report
New York State Comptroller Thomas P. DiNapoli in his July 2010 Cash Report noted some positive signs after four months of the 2010-11 fiscal year, though he stressed that the economic recovery remains tenuous and the State’s finances are subject to additional downward pressures.
“July revenue showed some positive signs, but the state still faces significant risks in its budget that might require additional action by the Legislature and Governor,” DiNapoli said. “The economic recovery is fragile and this budget has risks totaling billions of dollars. We’re not out of the woods yet.”
DiNapoli noted that sales tax revenue continues to grow and that while personal income tax collections for the month were below July 2009, that was likely due to the actual number of pay days this July compared to last July and not indicative of a changing economy.
The DiNapoli report found:
- Through July 31, General Fund receipts, including transfers from other funds, were $16.1 billion, $362.3 million or 2.3 percent above the same period last year.
- Total General Fund tax collections through July 31 totaled $11.9 billion, up $392.0 million, or 3.4 percent, from last year.
- Year-to-date General Fund Personal Income Tax collections were $7.6 billion, $293.5 million or 4.0 percent above last year through the first four months. However, Personal Income Tax receipts include $500 million in additional refunds that were delayed from the 2009-10 fiscal year, which artificially reduced growth and do not include approximately $387 million in one-time payments from New York City and Yonkers received last year.
- Year-to-date General Fund consumption tax collections, including sales taxes, were $2.8 billion, $176.6 million above collections from the same period last year. General Fund sales tax collections were $2.5 billion, $171.4 million or 7.2 percent higher than last year.
- Year-to-date General Fund business tax collections were $1.1 billion, $217.5 million lower than collections for the same period last year. Miscellaneous receipts were $580.3 million, $73.5 million above collections from last year.
- All Governmental Funds receipts through July 31 were $39.5 billion, $2.3 billion higher than last year for the same period, primarily due to federal receipts and tax collections. However, collections also include such things as the Metropolitan Transportation Authority’s commuter tax, Taxicab medallion user tax, an additional auto rental tax as well as collections associated with various tax increases which were not collected last year. In addition, non-recurring actions including refunds paid this year and a payment from New York City last year.
- Total tax collections were $18.0 billion, up $813.2 million, or 4.7 percent, from last year. Federal receipts increased by $1.8 billion from last year. Miscellaneous receipts through the first four months were $6.2 billion, $261.2 million lower than collections for the same period last year largely due to a transfer from the Public Asset Fund in FY 2009-10 that did not occur in FY 2010-11, the timing of bond proceeds, lower receipts related to the Lottery and Native American casinos.
- General Fund spending, including transfers to other funds was $17.8 billion, $1.1 billion, or 6.8 percent, higher than last year through July 31. The increase in spending was mostly due to increases in Medicaid spending (up $1.1 billion, which includes a non-recurring cycle payment delayed from last year) and education (up $1.1 billion primarily due to payment made in June that were delayed from last year). These increases were offset by declines in other Social Services spending (down $544.5 million primarily due to the timing of low income daycare, safety net and foster care spending), General State Charges (down $128.8 million), and non-personal services (down $138.5 million).
- All Governmental Funds spending through July 31 was $39.4 billion, $1.7 billion, or 4.6 percent, more than last year for the same period, primarily due to increases in education (up $2.1 billion or 23.6 percent) and Medicaid spending (up $1.6 billion or 12.6 percent). These increases were offset by lower spending for other Social Services (down $1.1 billion), health and environment (down $408.1 million primarily due to the Federal Government’s decision to retroactively apply higher FMAP rates for pharmaceutical costs resulting in a temporary suspension of state payments for Medicaid Part D clawback) and General State Charges (down $321.8 million).
The state’s finances are generally broken down by two main categories: General Fund and All Governmental 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. DiNapoli’s monthly cash report compares state finances against the same time period last year.
The monthly cash report does not make comparisons to the latest available financial plan that was released in February. Making such comparisons would be misleading because they would not take into account the Executive’s actions to cash manage state funds while budget enactment is delayed or any other necessary financial plan revisions. The Division of the Budget is required to release a Financial Plan for SFY 2010-11, updated for legislative actions, within 30 days of final action.
Click here for a copy of the report or visit the OSC Web site at www.osc.state.ny.us