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February 20, 2007

 

Comptroller DiNapoli Releases January Cash Report

The Office of the State Comptroller today released the January 2007 cash report. 

With 10 months of the State’s 2006-07 fiscal year complete, General Fund receipts (including transfers) were $3.5 billion or 8.8 percent ahead of last year.  All Funds receipts were $4.1 billion or 4.6 percent ahead of last year.

General Fund spending (including transfers) was $38.6 billion in the first ten months of the fiscal year.  This is $4.3 billion or 12.7 percent higher than during the first ten months of last fiscal year.  All Funds spending of $88.1 billion was $6.9 billion or 8.4 percent higher than last year.

The General Fund closing cash balance on January 31, 2007, was $7.7 billion, which was $20.4 million lower than projected by the current 2006-07 Financial Plan, updated January 31, 2007.   General Fund disbursements, including transfers, were slightly above plan by $39 million, while General Fund receipts, including transfers, were also slightly above plan by $18.5 million. 

General Fund Receipts and Disbursements

Personal income tax collections prior to transfers to dedicated funds were $3.3 billion or 12.4 percent higher than last year.   This is largely due to 13.3 percent year-to-year growth in estimated payments, and 15.7 percent growth in final payments, along with the early payment of an additional $500 million in refunds disbursed prior to the end of the 2005-06 fiscal year. 

Consumption/use tax receipts in the first ten months of the fiscal year fell 5.0 percent, or $364.3 million, compared to last year.   The major factor in this decline is the elimination of sales tax on clothing priced under $110, which took effect April 1, 2006.  

Business tax receipts rose by $1.1 billion, or 31.6 percent.  The largest growth was in the corporate franchise tax, which rose from $1.9 billion last year to $2.7 billion this year, or 45.1 percent.   Collections in both the bank tax and the insurance tax were also higher this year than last.  Bank tax collections grew from $559.7 million to $656.6 million, or 17.3 percent; insurance tax collections rose from $654.2 million to $767.0 million, or 17.2 percent.

All Other General Fund taxes rose from $763.6 million to $966.1 million, an increase of $202.5 million or 26.5 percent.  This increase was generated entirely by the estate and gift tax, which rose from $742.2 million in the first ten months of 2005-06 to $947.3 million in 2006-07. 

Total General Fund disbursements increased $4.3 billion or 12.7 percent as compared with the first ten months of 2005-06 fiscal year. The growth in General Fund disbursements is driven by increases in education, health,  and social services spending, along with additional payroll disbursements associated with retroactive collective bargaining agreements during this year compared to the same period last year. 

Local Assistance grants increased $2.7 billion over last year, or 12.5 percent. The largest dollar increase was in education spending, which rose from $9.8 billion to $10.8 billion, an increase of $1 billion or 10.3 percent.  This growth is due to increased State Aid to Public Schools and reimbursements to City University of New York (CUNY) for collective bargaining agreements.

Spending in the Health and Environment category tripled from $382.3 million to $1.1 billion, due primarily to the State’s obligation to pay prescription drug costs for New Yorkers who are eligible for both Medicaid and Medicare and who have temporarily lost prescription drug coverage because of complications with the Federal government’s implementation of its Medicare Part D prescription drug program.

Social Services spending increased 8.6 percent, from $8.7 billion to $9.5 billion, due to several factors including:

  • The increasing cost of the Medicaid program of providing health care services and prescription drugs,
  • The rising number of recipients of publicly financed health care,
  • Increases in medical service utilization in hospitals, nursing homes, and managed care programs, and
  • An additional Medicaid cycle payment through January 2007.   

Two changes, effective January 1, 2006, also contribute to higher spending in 2006-07:  the State began paying 100 percent of the local share of Family Health Plus (FHP), compared to the 75 percent share the State paid during 2005, and the State began capping local Medicaid expenditures.  In calendar year 2006, the State will finance all local costs in excess of 103.5 percent of 2005 expenditures.  The Financial Plan, released January 31, 2007, estimates that the FHP takeover and local cap together will result in increased costs to the State of $553 million in 2006-07.

Department Operations spending increased 12.2 percent, or $880.8 million.  General State Charges grew 8.6 percent, or $309.8 million, while General Fund transfers to other funds rose 21.6 percent, from $2.3 billion to $2.8 billion.  This increase reflects the transfer of $250 million to the Debt Reserve Reduction Fund to finance the defeasance of a like amount of outstanding State-supported debt.

Total Governmental Receipts and Disbursements

Total governmental receipts in the current fiscal year increased $4.1 billion or 4.6 percent from the first ten months of 2005-06.  As described above, personal income tax receipts grew significantly, an increase of $3.3 billion or 12.4 percent over 2005-06. 

Consumption/use taxes decreased slightly: 1.8 percent, or $212.8 million.  This decrease reflects the exemption of clothing from the State sales tax.  Business taxes increased 24.7 percent or $1.2 billion, largely on the strength of the corporate franchise tax.  All other taxes increased $212.6 million or 13.3 percent. 

Miscellaneous receipts grew from $14.2 billion to $14.5 billion, an increase of 1.8 percent.  Much of this is from increased bond proceeds and interest earnings, but it is also partly due to the continuing effect of HCRA receipts coming on budget.  Federal receipts decreased slightly, from $28.6 billion to $27.9 billion, or 2.6 percent. 

Total governmental funds disbursements increased $6.9 billion, or 8.4 percent.  Local Assistance grants rose 8.6 percent from $57.1 billion to $62.0 billion.  Of that amount, $681 million was disbursed as checks to homeowners through the STAR Local Property Tax Rebate program.  The State also made payments associated with the June 2006 flooding in the Southern Tier and the October snowstorm in Erie County. 

Health and Environment spending increased $944.7 million, from $2.8 billion to $3.8 billion, due partly to the prescription drug obligation mentioned above, but also to the full impact of Health Care Reform Act (HCRA) spending coming on-budget.  Along with the reasons stated above, another factor in the increased Local Assistance spending is the intergovernmental transfers (IGTs) and upper payment limit (UPL) payments that were not made through this time last fiscal year. 

Department Operations increased $883.7 million, or 6.5 percent, and General State Charges increased $366.2 million, or 8.7 percent.  Debt Service payments increased $336.5 million or 12.5 percent, reflecting the $250 million paid out of the Debt Reduction Reserve Fund.  Spending on capital projects increased $348.9 million, or 9.5 percent.

Click here for a copy of the Cash Report.

General Fund – Comparison of Financial Plan to Actual Results
(amounts in millions of dollars)

 

Financial Plan Projection

Actual Results

Variance

Cash Balance, April 1, 2006

3,257

3,257

0

 

 

 

 

Taxes

32,215

32,202

-13

Miscellaneous and Federal Receipts

1,796

1,831

35

Transfers from Other Funds

9,086

9,082

-4

Total Receipts

43,097

43,116

19

 

 

 

 

Local Assistance Grants

23,819

23,836

-17

Department Operations

8,036

8,083

-47

General State Charges

3,943

3,926

17

Transfers to Other Funds

2,788

2,781

7

Total Disbursements

38,586

38,625

-39

 

Cash Balance, January 31, 2007

7,768

7,748

-20

 

General Fund – Comparison of Current Year to Prior Year
(amounts in millions of dollars)

 

SFY 2005-06
Through 1/31/06

SFY 2006-07
Through 1/31/07

$ Change

% Change

Gross Personal Income Tax

30,616

33,709

3,093

10.1%

Less Refunds

-3,631

-3,379

252

-6.9%

Collections Before Accounting Transactions

26,985

30,330

3,345

12.4%

Less Transfers to Dedicated Funds

-9,015

-10,613

-1,598

17.7%

Net Reported Personal Income Tax

17,971

19,717

1,747

9.7%

Consumption/Use Taxes

7,283

6,919

-364

-5.0%

Business Taxes

3,496

4,600

1,104

31.6%

Other Taxes

764

966

203

26.5%

Tax Collections

29,513

32,202

2,689

9.1%

 

 

 

 

 

Miscellaneous and Federal Receipts

1,434

1,831

397

27.7%

Transfers From Other Funds

8,665

9,082

417

4.8%

Total Receipts

39,613

43,116

3,503

8.8%

Local Assistance

21,183

23,836

2,653

12.5%

Department Operations

7,202

8,083

881

12.2%

General State Charges

3,616

3,926

310

8.6%

Transfers To Other Funds

2,287

2,781

494

21.6%

Total Disbursements

34,287

38,625

4,338

12.7%

 

All Governmental Funds – Comparison of Current Year to Prior Year
(amounts in millions of dollars)

 

SFY 2005-06
Through 1/31/06

SFY 2006-07
Through 1/31/07

$ Change

% Change

Personal Income Tax

$26,985

$30,330

$3,345

12.4%

Consumption/Use Taxes

$11,663

$11,450

-$213

-1.8%

Business Taxes

$5,016

$6,256

$1,240

24.7%

Other Taxes

$1,597

$1,809

$213

13.3%

Miscellaneous Receipts

$14,205

$14,459

$254

1.8%

Federal Receipts

$28,606

$27,851

-$755

-2.6%

Total Receipts

$88,071

$92,154

$4,084

4.6%

 

 

 

 

 

Local Assistance Grants

$57,079

$62,004

$4,926

8.6%

Department Operations

$13,575

$14,459

$884

6.5%

General State Charges

$4,219

$4,585

$366

8.7%

Debt Service

$2,691

$3,028

$337

12.5%

Capital Projects

$3,688

$4,036

$349

9.5%

Total Disbursements

$81,251

$88,112

$6,861

8.4%

 

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