New York’s tax collections continue to lag behind what is predicted in the budget, state Comptroller Thomas DiNapoli announced today. Through October, the state received $35.9 billion, $170.8 million below what was estimated in July and $259.8 million less than initial estimates, he said.
“Tax revenue estimates should be revised downward. Adjustments should also factor in the additional costs from Hurricane Sandy,” he said in a statement. “As recovery efforts continue, realistic projections are critically important for the state to effectively manage its available resources.”
The First Quarter Update to the Finance Plan, which was released in July, predicted tax growth would be 3.1 percent for the year. But the increase was just 1.5 percent through October. That means collections would have to go up 5.1 percent for the last five months of the fiscal year, which ends March 31.
Gov. Andrew Cuomo’s Division of the Budget has not released its Mid-Year Update to the SFY 2012-13 Financial Plan, DiNapoli said, but it is expected the report will include revised projections that take into account the fiscal implications of Superstorm Sandy.
As for all funds the state receives, the picture is better. The balance was $1.41 billion higher than current projections, largely due to higher than expected miscellaneous and federal receipts. Spending was $612.3 million less than anticipated, but that’s largely due to timing issues, according to DiNapoli’s office.
The comptroller’s report also found that the General Fund through October had receipts that were $1.1 billion higher — 3.4 percent — than last year; personal income tax collections were 2 percent higher; and sales-tax collections that were 0.6 percent higher; and business tax collections were $163.9 million more than the same period in 2011.