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October 26, 2007


DiNapoli Releases September 2007 Cash Report

Variances Mark First Half of State Fiscal Year

The New York State General Fund closed the second quarter of its fiscal year with a $4.1 billion cash balance, which is $594.3 million ahead of the State’s updated forecast, according to the September 2007 Cash report released by New York State Comptroller Thomas P. DiNapoli. This variance sharply contrasts with the General Fund cash balance at the end of the first quarter, which was more than $1.3 billion below Financial Plan projections.

“Revenue performance has been steady, but we’re seeing some cautionary signs that could indicate tougher times lie ahead for the State,” DiNapoli said. “Indications are that the wide variances in the General Fund cash balance throughout the first half of New York’s fiscal year are the result of timing issues on the spending side of the ledger. However, the fluctuations illustrate the challenges in financial planning for the State given the current economic climate.”

The report indicates that the cash balance exceeded expectations included in the 2007-08 Financial Plan as updated in July, the end of the State’s first quarter, largely because of lower local assistance spending related to Medicaid and education. General Fund spending, including transfers from other funds, totaled $25.5 billion through Sept. 30, which is nearly $900 million higher than during the same period last year, but about $529 million less than Financial Plan expectations.

Additionally, General Fund receipts, including transfers from other funds, totaled $26.6 billion through Sept. 30, which is 2 percent higher than receipts during the same period last year, and about $65 million higher than expected under the updated Financial Plan. The report also shows that Personal Income Tax receipts were above the Financial Plan by $117 million, while Business Tax collections during the first two quarters were $93 million below forecast levels.

All Governmental Funds spending during the first half of the fiscal year was $52.8 billion, or 2 percent higher than during the same period last year. This increase reflects higher spending for education, transportation, disaster assistance, and department operations, among other things. All Governmental Funds receipts through Sept. 30 were $54.7 billion, which is 2.1 percent higher than receipts during the same period last year. However, the July update projected that Federal funds receipts would be about $1 billion higher than what was actually received. This variance in federal receipts is largely associated with lower than expected Medicaid and School Aid payments.

Click here for a copy of the report

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