screen-shot-2011-08-18-at-110353-am-300x300-4718597New York State’s tax collections and other receipts during the first four months of the 2011-12 fiscal year were $330 million below projections, according to the July monthly cash report issued yesterday by Comptroller Thomas DiNapoli.  That dip, he noted, “largely evaporates” the bulge in tax collections during the first three months of the year.

From the comptroller’s press release:

“New York’s recovering economy is struggling to reach cruising altitude, and the turbulence from volatile financial markets, a lackluster job market, a struggling housing sector, and political brinksmanship in Washington is creating additional drag,” DiNapoli said.  “Each of these factors could impact results through the remainder of the fiscal year. We have to remain vigilant to keep our finances on track.  Our fiscal margins are very tight, and we could go off course very quickly.”

The usual cautions apply: growth rates and performance compared to projections during a portion of the year can be heavily influenced by unusual, transitory factors such as audit settlements or delays in federal reimbursement.  Nonetheless, the numbers justify a cautious outlook.

Digging into the details, the latest cash report shows personal income tax withholding receipts for July were up about 2.7 percent from the same month in 2010, which represents a slowdown from the 4.5 percent year-to-year growth in withholding in June. Sales and use tax receipts in July were up about 6.3 percent, keeping roughly in line with projections.  Like the man said, it’s “tight.”

(Comparing monthly data on a year-to-year basis, also keep in mind that economic growth accelerated in the second half of 2010.)

About the Author

E.J. McMahon

Edmund J. McMahon is Empire Center's founder and a senior fellow.

Read more by E.J. McMahon

You may also like

Empire State’s new budget is a bridge to nowhere

Looking ahead to an uncertain post-pandemic recovery, New York’s newly enacted state budget for fiscal year 2022 raises spending by staggering amounts that—barring an unlikely rapid return to peak 2019 economic activity in New York City—can't possibly be sustained for more than a few years. The budget is a mid-2020s fiscal disaster in the making: an incomplete bridge over a deepening river of red ink. Read More

Road to perdition watch, cont’d (again)

A big wheel at Deutsche Bank, chief risk officer and board member Hugo Bänziger, has some portentous thoughts about banking (and therefore, about New York City and State finances) in today’s FT... Read More

The cliff deal and NY

The just-enacted federal tax increase will fall heavily on high-income New Yorkers – but will take a much smaller bite out of the Empire State’s tax base than President Barack Obama had been seeking... Read More

The debtor state

New York is at the top of the debt list in the latest U.S. Census data on state and local government finances. As of 2009, New York’s state and local long-term indebtedness came to $15,202 per-capita, more than any state and 74 percent above the national average. Read More

Cuomo discovers Obama’s NY-centric tax hike

President Obama’s proposed cap on itemized federal income tax deductions for state and local taxes would cost New York residents $3.8 billion a year, according to a report released by Governor Cuomo’s office today. However, you’ll have to dig a little to find that number: Obama isn’t mentioned until page 11 of the 26-page document. Read More

Cliff consequences for New York

New York residents will pay almost $90 billion in added taxes over the next two years if the federal government plunges over its fiscal “cliff” with no changes to current law, according to a timely report issued last week by Comptroller Thomas DiNapoli. The scheduled tax changes outweigh the impact of scheduled “sequestration” cuts to federal spending, which would cost the state and local governments $5 billion over the next nine years, including a $600 million hit to the state budget in fiscal 2013. Read More

The tentative tax-hike package (updated**)

Governor Andrew Cuomo and legislative leaders have just announced a deal on a major increase in the state income tax rates compared to what is scheduled under current law — i.e., the official breaking of the Cuomo promise not to raise taxes. Read More

There goes the MTA bailout – CORRECTION

AUTHOR’S NOTE: PLEASE SEE BELOW FOR IMPORTANT CORRECTIONS TO THIS POST IN BOLD.In May, after months of turmoil, Albany agreed to a new package of taxes for the state-run Metropolitan Transportation Authorit Read More

Subscribe

Sign up to receive updates about Empire Center research, news and events in your email.

CONTACT INFORMATION

Empire Center for Public Policy
30 South Pearl St.
Suite 1210
Albany, NY 12207

Phone: 518-434-3100

General Inquiries: Info@EmpireCenter.org

Press Inquiries: Press@EmpireCenter.org

About

The Empire Center is an independent, non-partisan, non-profit think tank located in Albany, New York. Our mission is to make New York a better place to live and work by promoting public policy reforms grounded in free-market principles, personal responsibility, and the ideals of effective and accountable government.

Empire Center Logo Enjoying our work? Sign up for email alerts on our latest news and research.
Together, we can make New York a better place to live and work!