DiNapoli: State Tax Collections Softened in May
Tax Revenue Still Ahead of Projections
Tax collections through the first two months of State Fiscal Year (SFY) 2012-13 were $10 billion, $416.4 million higher than projected, but the unexpected strength in April collections slowed in May, according to the May 2012 Cash Report released today by New York State Comptroller Thomas P. DiNapoli.
"New York may be in for a turbulent ride if the U.S. economy does not gain momentum and the European crisis escalates,” DiNapoli said. "While it is still early in the fiscal year, the last two months of tax collections illustrate the volatility of the economy. This reinforces the need to pay close attention to revenue and spending, and act quickly and decisively if we see significant drops in our tax revenues during the months ahead."
While April collections were more than anticipated, those in May were $69.5 million below expectations. Year-to-date All Funds tax collections were $124.4 million lower than collections for the same period last year.
DiNapoli’s Cash Report for May shows:
- All Funds tax collections for April and May of $10 billion were $416.4 million more than Enacted Budget Financial Plan estimates, primarily due to Personal Income Tax (PIT) collections in April, but $124.4 million, or 1.2 percent, less than collections through May of the previous fiscal year. The year-to-year decline results from a $184.3 million drop in PIT collections, due to high tax settlements of 2010 liabilities that occurred in April 2011.
- Collections for consumption and use taxes declined $29.2 million to $2.2 billion in May from the previous year. Other tax collections increased $25.8 million to $574.8 million and business taxes increased $63.3 million to $461.9 million.
- Miscellaneous receipts totaled $2.9 billion, $321.5 million lower than collections through May 2011 and $672.6 million below Financial Plan projections. Federal receipts fell by $2 billion to $5.2 billion, primarily due to timing of remaining American Recovery and Reinvestment Act (ARRA) stimulus funds. Federal receipts were $1.3 billion below estimates, partly because of the timing of state expenditures that drive federal assistance.
- All Funds spending totaled $16.6 billion, which was $1.7 billion, or 9.2 percent, lower than disbursements through the first two months of SFY 2011-12, primarily due to the timing of payments.
- The General Fund closing balance of $2 billion in May was $724.8 million higher than anticipated. General Fund receipts of $9 billion, including transfers from other funds, were $328.3 million more than projections, primarily due to higher than anticipated General Fund PIT collections ($285.8 million over Plan). General Fund consumption and use tax collections through May 31 were $72.2 million below projections and business tax collections were $90.3 million higher than projections.
- General Fund spending totaled $8.8 billion, $396.8 million below projections and $8.6 million more than the same period last year, primarily due to the timing of payments.
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 report can be seen at http://www.osc.state.ny.us/finance/finreports/cash/monthly/may12.pdf