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July 20, 2009


DiNapoli: First Quarter Cash Report Illustrates Need for Caution

State Comptroller Thomas P. DiNapoli today reported that state General Fund revenues for June, including transfers, were $5.8 billion, or $43 million higher than expected when compared to the state’s financial plan projections. This was largely because of a $251 million one-time payment from New York City for processing personal income taxes and higher than expected collections in bank taxes. Total General Fund revenues, including transfers, for the first quarter of the State Fiscal Year 2009-10 were $12.7 billion ― $305.1 million below projections and $4.1 billion, or 24.5 percent, less than the first three months of last year.

DiNapoli noted state General Fund spending for June, including transfers, was $4.8 billion ― $1.16 billion, or 19.5 percent lower than last year. In total for the first quarter, General Fund spending, including transfers, was $13.6 billion, or $1.22 billion below projections and $2.3 billion, or 14.6 percent, less than the first quarter of last year. The variance is partly due to the influx of federal stimulus funds and the timing of payments.

“The results for June were not as bad as anticipated given the downward trend of recent months,” DiNapoli said. “But the numbers reinforce the need for caution. Overall revenues for the year are still lower than projections and weak economic forecasts could result in lower than expected tax revenues in the coming months. Obviously, the state needs to watch spending closely because the state’s economic picture remains uncertain.”

Other report findings:

  • All Governmental Funds receipts through June 2009 of $28.3 billion were $375.5 million below projections and $2.3 billion lower than the first quarter last year, primarily because of lower personal income tax collections. Total first quarter tax collections of nearly $14 billion were down nearly $4 billion, or 22 percent, from last year and $487 million below projections. Miscellaneous receipts increased $848.2 million from last year, which is $209.8 million higher than projected.
  • All Governmental Funds spending through the first quarter of $29.4 billion was $693.6 million, or 2.4 percent, more than last year through June 30, 2008, primarily due to increases in education spending ($1.1 billion or 15 percent), and Medicaid ($818.7 million or 10 percent), largely due to increased caseloads associated with the economy. These increases were offset by lower spending for General State Charges (primarily due to the timing of payments) and other social services spending (down $522.6 million or 32.3 percent). All Funds spending was $1.6 billion below projections.

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 and the state’s current year Financial Plan.

Click here for a copy of the June Cash Report.



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