DiNapoli: April Tax Collections Down From 2011, But Higher Than Anticipated
Tax collections for the first month of state fiscal year (SFY) 2012-13 fell by $336.3 million from a year ago, but were $485.9 million higher than Financial Plan projections, according to the April 2012 Cash Report released today by State Comptroller Thomas P. DiNapoli.
"It is encouraging that as we start a new fiscal year tax collections are exceeding expectations," DiNapoli said. "Revenue is above initial projections, but it's too soon to determine if this is a trend or an anomaly. Collections exceeded projections at this time last year, but revenues deteriorated in later months and additional budget-balancing actions were required. The economy is still very uncertain, and there are still risks to the state's revenue stream."
The Comptroller's Cash Report for April shows that:"
- All Funds tax collections of $6.9 billion were $485.9 million more than Enacted Budget Financial Plan estimates, primarily due to Personal Income Tax (PIT) collections, but $336.3 million, or 4.7 percent, less than April 2011 collections. The year-to-year decline is primarily due to a $403.5 million drop in PIT collections. Collections for consumption and use taxes declined $55.5 million. Other tax collections increased $82.9 million to $322 million and business taxes rose $39.8 million to $310.1 million.
- All Funds Personal Income Tax collections totaled $5.1 billion, a 7.3 percent, or $403.5 million decline, from collections from April 2011. The decline is primarily due to high tax settlements of 2010 liabilities that occurred in April 2011. However, results for prior year estimated payments indicate that the settlement from April 2012 was significantly higher than expectations.
- Miscellaneous receipts totaled $1.3 billion, $344.7 million lower than April 2011 collections and $394.2 million below financial plan projections. Federal receipts fell by $2.1 billion to $2 billion, primarily due to timing of remaining American Recovery and Reinvestment Act (ARRA) stimulus funds. Federal receipts were $891.5 million below Plan, partly because of the timing of state expenditures that drive federal assistance.
- All Funds spending totaled $5.5 billion, which was $2.5 billion, or 31.1 percent, lower than April 2011 disbursements, primarily due to the timing of payments. Payments are expected to catch up to plan projections throughout the first quarter of the fiscal year.
- The General Fund closing balance of $5.6 billion was $1.3 billion higher than anticipated. General Fund receipts, including transfers from other funds, were $487.3 million more than Plan projections, primarily due to higher than anticipated PIT collections ($336.8 million over Plan).
- General Fund spending totaled $2.6 billion, which was $818.4 million below Plan projections, again 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.
The complete April cash report can be found at: http://osc.state.ny.us/finance/finreports/cash/monthly/april12.pdf