DiNapoli: State tax receipts exceed initial projections by $7.2 billion through first 6 months

State tax receipts in state fiscal year (SFY) 2021-22 exceeded the enacted budget financial plan forecast (May estimates) by $7.2 billion through the end of September, according to the monthly state cash report released by New York State Comptroller Thomas P. DiNapoli. Tax collections were $1.8 billion greater than forecast by the Division of the Budget (DOB) in the first quarter update to the financial plan, released last month. Tax receipts through Sept. 30 are $13.4 billion greater than they were through the same month in SFY 2020-21.

“Strong tax collections halfway through the fiscal year are an encouraging sign of economic recovery,” DiNapoli said. “This provides an excellent opportunity to improve the state’s long-term fiscal standing by using surplus revenues to bolster rainy day fund reserves and fund critical infrastructure projects instead of issuing debt.”

Tax receipts through September totaled $52.9 billion, bolstered by collections from the higher tax rates included in the SFY 2021-22 enacted state budget. Personal income tax (PIT) receipts totaled $35.8 billion and were $8.9 billion greater year-to-date than last year. PIT collections exceeded May estimates by $4.8 billion and the first quarter update forecast by $583.2 million.

Year-to-date, consumption and use tax collections totaled $9.8 billion, 27.1% ($2.1 billion) higher than last year. Business taxes totaled $5.9 billion ($1.9 billion higher than last year).

All funds spending through September totaled $91.8 billion, which was $4.7 billion (5.3%) higher than last year for the same period, primarily due to higher pandemic-related costs including rental assistance and stabilization grants. All funds spending through September was nearly $5.1 billion lower than DOB’s May estimates and nearly $1.5 billion lower than forecast in the first quarter update, primarily due to lower than anticipated spending from federal funds. 

The state’s general fund ended September with a balance of just under $20 billion, $4.5 billion higher than last year at the same time reflecting, in part, higher-than-anticipated tax collections and lower-than-anticipated spending.