State tax receipts totaled $27.6 billion through the first quarter of State Fiscal Year (SFY) 2023-24, $450.8 million higher than estimates released in the Division of the Budget’s (DOB) Enacted Budget Financial Plan. However, collections were $6.8 billion lower than last year through the quarter ending in June 2022, according to the monthly State Cash Report released on Monday by New York State Comptroller Thomas DiNapoli.
Personal income tax (PIT) receipts totaled $14.5 billion, $128.4 million below DOB’s financial plan projections through the first quarter. PIT receipts were $7.1 billion lower than the same period in SFY 2022-23, reflecting, in part, the impact of slower income growth and financial market volatility in 2022 on collections from returns in April and May.
Year-to-date consumption and use tax collections totaled $5.4 billion which were 5.9%, or $302 million, higher than the same period last year, but $9.5 million lower than DOB anticipated. Sales tax receipts, the largest share of these taxes, increased by $288 million, or 6.2%. Business taxes, which include collections from the pass-through entity tax (PTET), totaled $6.7 billion, $123 million lower than through June in the prior fiscal year, but $628 million higher than financial plan projections.
All Funds spending through June totaled $58.6 billion, which was $9 billion, or 18.3%, higher than last year for the same period, largely reflecting higher Medicaid costs. All Funds spending through June was $292.5 million lower than DOB projected, largely due to lower than anticipated spending from capital projects funds. State Operating Funds spending totaled $30.4 billion, $3 billion, or 11.1% higher than last year and $694 million lower than projected.
The State’s General Fund ended June with a balance of $44.2 billion, $1.3 billion higher than DOB projected and $387 million higher than last year at the same time primarily due to higher than anticipated tax collections and lower than anticipated spending.
“State revenue collections performed better than the Division of the Budget’s current estimates for the first quarter, but the economy is sending mixed signals that cloud the state’s fiscal outlook,” DiNapoli said. “While inflation has eased and hiring has held up, consumer spending has slowed in recent months and some tax collections are showing signs of weakness. My office will continue to closely monitor economic conditions and what it means short- and long-term for our state’s finances.”
