New York State Tax Collections Below Projections

By Darren Dodge

New York State Tax Collections Below Projections

April 18, 2011 Updated Apr 18, 2011 at 2:15 PM EDT

Albany, NY (WBNG Binghamton) New York State's tax collections were well behind the projections in the 2010-1011 fiscal year.

Comptroller Thomas DiNapoli says tax collections at the end of the year were $926 Million below the original projections in the state budget passed in 2010.

Collections of all revenues were $1.2 Billion below the March 2011 projections.

Despite that, the state's general fund ended the fiscal year $19.1 million above projections made just a month shy of the fiscal year's end on April 1.

The revenue collections news was not good, but the Comptroller's report found the state spent $1.3 billion less that it was expecting to spend in March.

The lower collections were due to less federal payments that predicted.

Spending was lower because of sending less to local governments for local assistance grants and capital projects.

“The Enacted Budget took significant steps to address the state’s chronic structural deficit with mostly recurring actions rather than the temporary resources used last year,” DiNapoli said. “However, some risks remain. Revenue lagged projections throughout the year, and there are still significant shortfalls in certain areas, such as business taxes. It is important that the Enacted Budget Financial Plan reflect realistic projections. The state’s persistently slim financial margins necessitate close monitoring and attentive cash management.”

For the fiscal year 2010-2011, New York collected $133.3 billion dollar, which grew 5% from the previous year.

But spending grew by 6.3% to $134.8 billion.

The state budget for last year had called for an increase in spending of 7.1%.

Overall, DiNapoli says the state collected more revenue in 2010-2011, but says the state is working on very narrow cash margins and has to keep a very careful eye on the state's cash flow.

Key areas of growth were in general fund collections, and a growth of 5.5% in income tax collections, up $344.6 million from expected collection.

The study also shows people are spending more, as consumption taxes and sales tax revenue both grew by around 9%.

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