DiNapoli: State’s financial hole deepens, tax revenues trail $3.2 billion in 2020
State Comptroller Thomas P. DiNapoli reports that state tax receipts are $3.2 billion lower than last year according to the State Cash Report for August.
DiNapoli noted state tax receipts of $4.3 billion in August were $309.3 million above the latest projections by the state Division of Budget, but $219.1 million below collections in August 2019.
“Tax revenues continue to fall short of levels needed to fund education, health care and other vital services in this year’s budget,” DiNapoli said. “The revenue hole the pandemic created is getting deeper. Unless Washington acts to provide further fiscal relief for New York, painful budget decisions lie ahead.”
Personal income tax collections totaled $2.7 billion in August, $157 million higher than anticipated, but $185.5 million, or 6.4%, lower than last year. Year to date collections were $1.6 billion, or 6.7%, lower than last year.
Sales tax receipts totaled $5.1 billion through August, $1.3 billion, or 20.2%, lower than last year. August sales tax receipts were $97.2 million, or 7.8%, below those a year earlier.
All Funds spending through August totaled $64.3 billion, down $2.5 billion, or 3.8%, from the previous year. Spending was $2.1 billion below the latest projections, primarily in local assistance grants ($1.4 billion below projections and $1.9 billion below last year). State operations spending was $369 million below projections through August.
The General Fund ended the month with a balance of $13.5 billion, $972.7 million higher than projected and $6.6 billion higher than August 2019. This is partly due to $4.5 billion in short-term borrowing proceeds and delays in certain payments to local governments and other entities.