DiNapoli: October Results Support Downward Financial Plan Revenue Revisions
All Funds tax collections through October 31 were $584 million below August estimates, and support recent Comptroller projections and Financial Plan revisions, according to the October 2011 monthly cash report released today by Comptroller Thomas P. DiNapoli. Nonetheless, All Funds tax collections of $35.3 billion through October were 11.1 percent or $3.5 billion higher than the same period last year.
“New York’s financial results over the past several months support the recent downward revisions to the State’s Financial Plan and reinforce recent Quick Start projections,” DiNapoli said. “It is more important than ever to confront our budgetary problems with responsible, recurring actions to ensure a fair and balanced budget that improves the health of our state’s economy.”
Various categories of revenue have been consistently better than results from State Fiscal Year (SFY) 2010-11. However, Financial Plan forecasts, which were revised in the Mid-Year Financial Plan Update on November 14, reflect that the significant growth in the first half of the year did not continue and that economic projections from April needed to be revised downward. Still, New York’s tax collections are 11 percent higher than last year even as several other states are again facing economic declines.
Comptroller DiNapoli also released updated Quick Start comparisons between Division of the Budget (DOB) projections and the projections from the Comptroller’s office. In response to revenue and spending results through the middle of the fiscal year that continued to lag earlier projections, DOB lowered their year-end projection for All Funds tax collections in the current year by $473 million and another $1 billion in SFY 2012-13 in the Mid-Year Financial Plan Update.
Other findings from the October Cash Report include:
- General Fund receipts (including transfers from other funds) of $32 billion through the first seven months were 11.4 percent, or $3.3 billion, higher than receipts from the same period last year. This was $88.1 million below updated Mid-Year Financial Plan projections and $556.1 million below August Financial Plan projections.
- General Fund tax collections totaled $23.9 billion, which was an increase of $2.6 billion, or 12.4 percent, from last year for the same period. Tax collections were $15.3 million lower than Mid-Year projections and $475.3 million lower than August projections.
- General Fund PIT collections through October 31 totaled $15.5 billion and grew 15.6 percent, or $2.1 billion, from last year. Year-to-date PIT collections were $6.5 million lower than Mid-Year projections. Withholding collections grew 3 percent through October, compared to the same period last year. Largely due to gains in tax settlements from 2010, year-to-date estimated payments grew 29.6 percent, or $1.8 billion. Year-to-date PIT refunds were $640.9 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 5 percent over last year to $5.2 billion, which was $3.9 million lower than Mid-Year projections. General Fund sales tax collections grew 5.6 percent through the first seven months of the fiscal year, compared to the same period last year.
- General Fund business tax collections were $2.4 billion through the first seven months of SFY 2011-12, which was $321.2 million more than the same period a year earlier, but $3.6 million less than Mid-Year projections.
- All Funds receipts of $73.9 billion were 1.6 percent, or $1.2 billion, higher than last year, primarily because of PIT collections, which increased $2.8 billion, or 14.7 percent. However, this was offset by $2.5 billion in lower federal receipts from the same period last year. All Funds receipts were $194.4 million lower than Mid-Year Financial Plan projections, primarily because of miscellaneous receipts, which were $115.7 million below Mid-Year projections.
- All Funds tax collections of $35.3 billion increased by 11.1 percent, or $3.5 billion, from last year, primarily from PIT collections (up $2.8 billion). Consumption taxes grew $368.7 million, or 4.5 percent. Business taxes grew $355.9 million and other taxes grew $54 million. All Funds Tax collections were $11.8 million less than Mid-Year projections but $583.8 million below August projections.
- General Fund spending (including transfers to other funds) of $30 billion increased 4.2 percent, or $1.2 billion, from the same period last year. General Fund spending was $35 million below Mid-Year projections.
- Local assistance increased $1.4 billion, or 7.5 percent, primarily reflecting higher spending for Medicaid due to the June 30 end of federal stimulus funding. Education spending declined $1.2 billion, because of a non-recurring increase of spending in the first quarter of SFY 2010-11. General state charges grew $277.2 million from last year, largely due to the effect of cash flow issues in the first quarter of SFY 2010-11 as well as increased health insurance premiums. Departmental Operations declined $207.1 million compared to last year.
- All Governmental Funds spending declined 0.2 percent, or $143.8 million, compared to last year, primarily due to $1.9 billion in reduced spending for education from non-recurring spending in SFY 2010-11. All Funds spending was $96.5 million lower than Mid-Year projections. Debt service increased $92.2 million (4 percent). Departmental Operations spending declined 1.2 percent, or $125.3 million, compared to the same period last year.
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.