State tax revenues through October totaled $43.8 billion, $3 billion lower than the same period in the previous fiscal year, according to the monthly State Cash Report released today by New York State Comptroller Thomas P. DiNapoli.
“Revenues are down and New York continues to withhold billions of dollars in spending due to the fiscal impact of the coronavirus pandemic,” DiNapoli said. “Caution is needed because rising infection rates may force more shutdowns and even greater economic damage. Washington must respond with more economic stimulus, including real relief for state and local governments.”
DiNapoli noted that spending from State Operating Funds, which pays for the state’s day-to-day operations as well as certain local assistance, through the first seven months of the fiscal year was $49.9 billion, or $6.1 billion lower than a year earlier. This is due to several factors including an increase in federal Medicaid reimbursements and according to the state Division of the Budget (DOB), withholding of $2.6 billion, including $2.4 billion in local assistance payments, through September.
Total tax receipts in October of $4.3 billion were $432.9 million below DOB’s projection in its FY 2021 Mid-Year Update, issued Oct. 30, but $320.1 million higher than DOB’s projection in its First Quarter Update issued in August. While DOB did not change its projections of tax receipts for the full 2020-21 fiscal year in the Mid-Year Update, it revised estimates for the remaining months of the fiscal year, including an increase in total October tax receipts of $753 million from its August projection.
Personal income tax revenues in October were $46.8 million, or 1.8 percent, below those in the previous year. Sales tax receipts in October were $97.7 million, or 7.9 percent, lower than a year earlier. Year-to-date sales tax collections through October were nearly $1.5 billion below a year earlier.
As of Oct. 31, the General Fund held a balance of $14.9 billion, $1.2 billion lower than projected by DOB, and $6.1 billion higher than last year at the same time. The higher balance is driven partly by $4.5 billion in proceeds from short-term borrowing that DOB anticipates repaying before the end of the fiscal year.