February 19, 2009
DiNapoli Releases January 2009 Cash Report
State Comptroller Thomas P. DiNapoli today said revenues grew $3.3 billion, or 3.6 percent, through January compared to the same period last year due to growth in federal receipts and personal income tax collections. Personal income tax collections were up, but withholding taxes, the largest portion of personal income tax collections, grew only 0.3 percent through January compared to 6.1 percent growth through January 2008. The Division of the Budget is projecting that withholding collections in the General Fund will decline 2.9 percent for the year. General Fund businesses taxes fell $295.3 million compared to this time last year.
“Revenue growth is slowing dramatically,” DiNapoli said. “This was expected and the state’s financial plan was adjusted, but it still hurts just as much. The federal economic stimulus package will ease some of the pain. But the stimulus package is not a bail out; it’s not a substitute for tough decisions. New York needs to align spending and revenue. Until we fix the structural imbalance in the state budget, New York cannot achieve long-term fiscal stability.”
Other findings in the January Cash Report DiNapoli released today include:
As a result of higher than anticipated revenue collections and lower than projected spending, the General Fund closing balance is $287.5 million over Financial Plan projections.
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.
Click here for a copy of the report.