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Total state tax collections through the first quarter of the state’s fiscal year 2014-15 were $1.3 billion higher than Division of the Budget (DOB) projections, largely reflecting growth in business tax collections and increased personal income tax (PIT) receipts in June, according to a report on state finances issued today by New York State Comptroller Thomas P. DiNapoli.“Personal income tax collections continue to improve after April’s decline, and the state is now in a relatively strong cash position,” DiNapoli said. “The state’s sizable influx of one-time revenue from legal settlements also has significantly improved the state’s finances, but how this money will be used is still up for debate.”
DiNapoli’s report on the state’s first-quarter results found that year-to-date tax collections were $632.3 million, or 3.3 percent, lower than collections for the same period last year, primarily reflecting a $1.6 billion drop in personal income tax (PIT) collections in April and May but higher than DOB projections. Tax receipts rebounded during the month of June, coming in $762.9 million higher than collections from June of last year.
Through the first quarter of the fiscal year, sales tax collections have increased 2.7 percent. Collections in other taxes have increased 9.9 percent and miscellaneous receipts have increased 22.3 percent, primarily thanks to $785 million in financial settlements. The state received $50 million from MetLife, $20 million from AXA Equitable and $715 million from Credit Suisse.
Another $2.2 billion was received July 20, after the close of the first quarter, from a settlement with BNP Paribas. An additional $1.3 billion is expected from the settlement with $298 million anticipated for the chemical dependency fund.
DiNapoli’s report notes that sales tax collections have increased 2.7 percent, but are projected by DOB to increase 3 percent by year-end. PIT withholding has increased 4.7 percent so far, but must rise 5.3 percent by year-end to match Financial Plan projections.
Receipts collected in the General Fund (including transfers from other funds) totaled $18.8 billion through the first quarter, representing an increase of 3.5 percent, or $629.6 million, from a year earlier.
A copy of the first quarter report can be found at: http://www.osc.state.ny.us/reports/budget/2014/2014-15_1st_quarter_review.pdf
Comptroller DiNapoli also released the June 2014 Cash Report. Findings from that report include:
- All Funds spending increased 2.2 percent, or $687.9 million, in the first quarter, primarily due to Medicaid expenses and the timing of the state’s pension contribution;
- General Fund spending (including transfers to other funds) increased 6.2 percent, or $928.9 million, to $15.9 billion, which was $637.9 million lower than projected; and
- The General Fund closing balance totaled $5.1 billion, which was more than $2.6 billion higher than anticipated in the enacted budget financial plan
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