Quarterly New York State Tax Revenues Drop 24% Compared To 2008
A new monthly report released by the New York State Comptroller indicates that the tax collection weakness in Empire State continues. For the April-July quarter total tax revenue was $11.5 billion, $52 million below projection, and, more significantly, $3.6 billion below amount collected in the prior year period. For the Year To Date period, receipts, including transfers from other funds, through
July 2009 of $15.7 billion were $190.9 million below Financial Plan
projections released by DOB on July 30 and $4.8 billion lower than last
year for the same period.
General Fund Personal Income Tax collections of $7.3 billion were $3.3
billion below last year through July, primarily due to collections in
April 2009, and $25.4 million below projections for the first four
months. Year-to-date business tax collections of $1.3 billion were $181
million higher than collections for the same period last year,
primarily due to higher than expected collections in June 2009 and $7.1
million below projections for the first four months.
“Although there were some small signs that the national economy is
slowly turning around, economists project it will take longer for New
York State to recover,” DiNapoli said. “The fact remains that state
revenues continue to fall below financial estimates that were updated
just two weeks. New York has a very real and growing current year
deficit. The Governor and Legislature need to make some difficult
choices that weren’t made in the Enacted State Budget. The state cannot
afford to postpone these decisions. We must readjust our priorities to
meet the economic crisis.”
On the spending side, things are also getting serious: while overall spend was $16.7 billion $2.4 billion, below the prior year period, the decline in spending was mostly due to costs for General
State Charges (down $829.8 million primarily due to the timing of
payments) and Medicaid (down $1.7 billion – reflecting federal stimulus
Medicaid payments made from other funds).
In other words, the $1 billion deficit to date is in reality almost $2 billion if all expenses were recognized as incurred, and almost $4 billion if one excludes the Medicaid piggybank.
Also, if New Yorkers complain about the educational system, they should note that education spending increased by 649 million compared to the last year.