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State tax collections totaled $24.2 billion over the first four months of the state fiscal year (SFY), a drop of $1.1 billion, or 4.4 percent, from the same period last year, according to the July state cash report issued today by State Comptroller Thomas P. DiNapoli.

Tax collections through July were $21.8 million over the Executive's latest projections from earlier this month. However, collections are more than $500 million below initial projections, primarily due to lower than expected personal income tax (PIT) collections.

"Tax collections are well below initial projections, and the Division of the Budget has made adjustments," DiNapoli said. "We still have eight months left in the fiscal year, and the state must be prepared to take action if necessary."

Through the first four months of the fiscal year, the state has transferred $792 million from the General Fund to Capital Projects funds, up $566.9 million from the same period last year. In its first quarter update, the Division of the Budget (DOB) reduced the projection for General Fund transfers to Capital Projects funds this year by $651 million and indicated these transfers, largely intended for assistance to the Thruway Authority, will instead be made in SFY 2017-18.

Total receipts, including miscellaneous and federal receipts, declined $1.5 billion, or 3.1 percent, from a year earlier, primarily due to a large decline in settlement revenues and lower estimated PIT payments. Total receipts of $47.9 billion were $108 million DOB's August 9 projections, but $989 million below the Enacted Budget Financial Plan's estimates.

The state spent $47.2 billion through the first four months of the fiscal year, $2.3 billion, or 5.1 percent, higher than last year for the same period. Significant increases include spending for public health programs (up $861.9 million largely because of payments for the Essential Plan Program) and Medicaid (up just over $1 billion primarily from federal sources). Overall spending was nearly $73.7 million over the latest projections from the first quarter update and $278.3 million below projections in the Enacted Budget Financial Plan.

The General Fund ended July with a balance of $6.8 billion, which was $23.3 million over the latest projections, nearly $1.1 billion lower than the projection from the Enacted Budget, and $2.9 billion lower than a year earlier.

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