DiNapoli: Tax Collections in Line with Lower Projections
Tax collections through the first 10 months of the 2011-12 fiscal year were in line with recent projections, which were lowered last month, according to the January 2012 cash report released today by New York State Comptroller Thomas P. DiNapoli. Collections totaled $54.2 billion, $84.2 million higher than estimates updated in January, but nearly $390 million below initial estimates in the 2011-12 Enacted Budget.
“Even though receipts continue to grow, we continue to have concerns with current economic conditions,” DiNapoli said. “As budget negotiations continue, it is vitally important to be realistic about revenue growth projections and how much the state has available to spend.”
Year-to-date growth in All Funds tax collections through January was 6.9 percent over the same period last year largely because of a one-time jump in April collections. If April growth is backed out, year-to-date growth slows to 4.4 percent. January was the first month to reflect revenue from the Personal Income Tax (PIT) changes made in December, and these changes were expected to generate $385 million through the end of the current fiscal year.
Other findings from the January Cash Report include:
- General Fund receipts (including transfers from other funds) of $46.5 billion through the first 10 months of SFY 2011-12 were 6.6 percent, or $2.9 billion, higher than the same period last year. This was $51.6 million above updated Financial Plan projections included in the State Fiscal Year (SFY) 2012-13 Executive Budget. The variance to Plan is primarily due to higher than anticipated business tax collections.
- General Fund tax collections totaled $34.6 billion, an increase of $2.5 million, or 8 percent, from last year for the same period. Tax collections were $56.3 million more than the latest projections, primarily due to business tax collections.
- General Fund PIT collections through January 31 totaled $22.1 billion and increased 10.2 percent, or nearly $2.1 billion, from last year. Year-to-date PIT collections were $200,000 more than updated projections.
- Withholding collections grew 0.9 percent through the first 10 months, compared to the same period last year. Largely due to collections from April 2011 which reflect tax settlements from 2010, year-to-date estimated payments grew 19.4 percent, or $1.9 billion. Year-to-date PIT refunds were $788.6 million lower than last year primarily because $500 million in refunds were moved from the final quarter of SFY 2009-10 into the first quarter of SFY 2010-11 for cash flow relief, thereby artificially increasing refunds last year.
- General Fund consumption taxes increased 3 percent from last year to $7.6 billion, which was $4.2 million greater than the latest projections. General Fund sales tax collections grew 3.2 percent through January 31, compared to the same period last year.
- General Fund business tax collections totaled $3.9 billion through the first 10 months of SFY 2011-12, which was $368.5 million more than the same period a year earlier and $85.7 million more than the latest updated projections.
- All Funds receipts of $109.4 billion were 0.1 percent, or $163.2 million, lower than last year, primarily because of federal receipts, which declined $3.9 billion, or 9.6 percent. However, the decline in federal receipts was offset by $2.7 billion in higher PIT collections from the same period last year. All Funds receipts were $157.4 million higher than the latest Financial Plan projections, primarily because of federal receipts.
- All Funds tax collections of $54.2 billion increased by 6.9 percent, or $3.5 billion, from last year, primarily from PIT collections (up $2.7 billion). Consumption taxes grew $330.4 million, or 2.8 percent. Business taxes grew $454.6 million and other taxes declined $20.7 million. All Funds Tax collections were $84.2 million more than the latest projections.
- General Fund spending (including transfers to other funds) of $41.2 billion increased 2.3 percent, or $943.5 million, from the same period last year. General Fund spending was $301.6 million below the latest projections, primarily due to lower local assistance payments ($150.8 million largely due to the timing of education payments) as well as lower transfers to other funds ($283.4 million).
- General Fund spending for local assistance increased $1.1 billion over the prior year, or 4.1 percent, primarily reflecting nearly $3 billion in higher spending for Medicaid due to the June 30 end of federal stimulus funding. Education spending declined $1.8 billion, because of a non-recurring increase of spending in the first quarter of SFY 2010-11. General state charges from the General Fund grew $202.9 million from last year and Departmental Operations declined $269 million compared to last year.
- All Governmental Funds spending declined 1.4 percent, or $1.5 billion, compared to last year, primarily due to lower spending for education (down $2.6 billion or 10.5 percent) because of a non-recurring increase of spending in the first quarter of SFY 2010-11. Debt service increased $123.2 million (3.4 percent). Departmental Operations spending declined 0.8 percent, or $119.3 million, compared to the same period last year. All Funds spending was $524.3 million lower than latest 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.
A copy of the January Cash Report can be seen at http://www.osc.state.ny.us/finance/finreports/cash/monthly/january12.pdf