By Dave Lucas
http://stream.publicbroadcasting.net/production/mp3/wamc/local-wamc-732408.mp3
Albany, NY – Tax collections during the first three months of the New York's budget year fell $195 million short of projections while overall receipts were higher. Capital District Bureau chief Dave Lucas spoke with the State Comptroller's office about a new report that underscores how badly much of the financial sector has performed.
Some words of caution from State Comptroller Tom DiNapoli with the release of his State Revenue Collections Report and June Cash Report - " This looks like a strong start to the fiscal year, but looks can be deceiving."
Overall revenue was higher than expected in the first quarter of the state's fiscal year due to an influx of federal funds. BUT total tax collections were $195 million BELOW projections. Anticipated business tax collections fell below estimates by $453 million in the General Fund; Taxes paid by banks in New York State slid 54 percent in the first quarter.
The comptroller believes that a 1-point-7 billion dollar increase in personal income tax revenues likely results from the settlement of the prior year's tax liabilities, and therefore is not indicative of future collections.
DiNapoli's analysis found that business tax collections would have to grow by nearly 14 percent for the remainder of the year to meet the state's Financial Plan projection that business tax collections will grow 9 percent in the General Fund during fiscal year 2008-09.
Click here for the report (PDF file) examining first quarter state revenues.
Click here for a copy of the June 2008 Cash Report (also PDF), which includes a full breakdown of all revenue and spending for the first quarter.