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July 17, 2013

 

DiNapoli: State Tax Receipts Down in June, but Overall State Fiscal Picture Positive

Personal Income Tax (PIT) and business tax collections were down in June compared to last year, but the state’s General Fund balance ended the month higher than anticipated, in part because of a $250 million regulatory settlement, according to the June cash report released today by New York State Comptroller Thomas P. DiNapoli.

Gross PIT receipts in June rose from a year ago, but an increase in tax refunds contributed to a $21.8 million decline in net receipts. Business tax collections during June fell $97.2 million from a year earlier, largely because of a drop in bank taxes.

"State finances are stronger than we’ve seen in a while. We are seeing positive signs on the revenue side of the ledger as sales tax collections continue to show growth," DiNapoli said. “The economy seems to be gaining momentum, but there is also uncertainty which demonstrates the ongoing need to be cautious. The regulatory settlement dollars also helped our bottom line but should be used for nonrecurring actions, such as reducing debt or paying for capital projects.”

Miscellaneous receipts totaled $2.1 billion in June, $186.9 higher than collections from last June. This includes a $250 million settlement from Bank of Tokyo Mitsubishi UFJ which was not projected in the Financial Plan and a $250 million transfer from the State Insurance Fund. Partly offsetting the new revenue was a decline in bond proceeds from $132.3 million to $84.6 million. This decline is attributable to miscellaneous receipts being $305.2 million lower than projections in capital projects funds through June 30.

All Funds tax collections increased 15.2 percent to $19.3 billion through the first quarter of SFY 2013-14, from the same time last year. PIT collections grew 21.1 percent with almost 90 percent of the growth due to estimated tax collections from April, primarily driven by federal tax increases in January. This level of growth is not likely to continue. Withholding collections, taxes that are paid directly from paychecks and the state’s largest revenue source after federal receipts, increased 3.6 percent through the first quarter.

The General Fund closing balance of $4.8 billion at the end of the first quarter was $1.2 billion higher than enacted budget projections. This reflects $763.4 million in higher than anticipated receipts and $444.8 million in lower than anticipated spending.

Other findings from the June Cash Report include:

  • All Funds receipts of $35.4 billion through the first quarter were 17.8 percent, or $5.3 billion, higher than receipts from the same period last year. All Funds tax collections of $19.3 billion increased by 15.2 percent, or $2.6 billion, from last year, which was $321 million over enacted budget projections.
  • All Funds PIT collections during the quarter were up $2.2 billion, or 21.1 percent, from last year, which was $287.3 million higher than projections.
  • Business tax collections so far this year were up $158.4 million, or 8.9 percent, which was $21.2 million lower than projections.
  • Consumption taxes increased by $187.9 million through June, or 5.2 percent, and were $89.9 million higher than projected.
  • Other taxes declined $29.4 million, or 3.8 percent, and were $35 million lower than enacted budget projections for the quarter.
  • Federal receipts during the first quarter were up nearly $2.3 billion, or 26.9 percent, in part because of an increase in payments for disaster assistance. Most of that growth was projected in the Financial Plan as receipts exceeded projections by $97.6 million.
  • All Governmental Funds spending increased 11.9 percent, or $3.4 billion through the first quarter, compared to last year, primarily due to local assistance payments. Much of the increase is due to disaster assistance within public safety (up $518.1 million) and Medicaid (up $696.1 million). However, local assistance payments through the first quarter were $697.7 million below projections for the same period.
  • Departmental Operations increased $531.7 million, or 12.8 percent, and were $27.5 million above projections for the quarter.
  • Debt service declined $153.6 million and was $5.5 million lower than projections. Capital spending increased $293.2 million, but was $80.6 million lower than projections. All Funds spending was $731.7 million lower than Enacted Budget projections.
  • General Fund receipts (including transfers from other funds) of $18.2 billion through the first quarter were 18.1 percent, or $2.8 billion, higher than receipts from the same period last year.  General Fund receipts were $763.4 million higher than projections through the first quarter.
  • General Fund spending during the quarter (including transfers to other funds) of just under $15 billion increased 5.2 percent, or $743.4 million, from the same period last year, which was $444.8 million lower than enacted budget projections through the first quarter. Local assistance increased $299.8 million, or 3.1 percent. General state charges increased $214.1 million from last year. Departmental Operations spending declined $326.8 million or 15.4 percent 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.
DiNapoli's office issues the monthly cash report as part of its statutory duties and provides it to the public as part of the comptroller's efforts to increase transparency and accountability for state finances.
For the complete report, go to: http://www.osc.state.ny.us/finance/finreports/cash/monthly/june13.pdf

cash report graphic

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