January 19, 2023
The timing of this news couldn’t be better given the Administration is still preparing the executive budget proposal. To be blunt: It makes it much harder to claim that the state is in financial trouble and thus, must be ultra conservative with spending in the proposed budget.
New York tax receipts exceed projections by $7.7 billion, DiNapoli says
BY ELEONORA FRANCICA | 01/19/2023 03:13 PM EST
State Comptroller Tom DiNapoli released the State Cash Report, which shows tax receipts exceed $7.7 billion compared with DOB’s projections. | Richard Drew/AP Photo
ALBANY N.Y. — Here’s some good news this week for Gov. Kathy Hochul after her chief judge nominee was rejected: State tax revenue is exceeding expectations.
The monthly State Cash Report released by Comptroller Tom DiNapoli showed tax revenue beat projections by $7.7 billion — extra money Hochul could use to improve her budget plan for the new fiscal year that starts April 1.
The state received $79.8 billion of tax receipts in the third quarter of the fiscal year. Personal income and consumption use taxes were the major contributors to the higher-than-expected results, surpassing midyear projections from the Division of the Budget.
On the contrary, while the DOB projected $20 billion in revenue from business taxes, the report shows their receipts totaled $19.3 billion.
However, the economic recession and an uncertain future regarding state revenue are reasons for concern, DiNapoli said.
“These conditions reinforce the importance of increasing rainy day reserve funds on or ahead of the schedule proposed in the Financial Plan,” he said in a statement.
Through December, all state funds spending totaled $149 billion, which is 5.5 percent higher than the same period last year. Because of that and the lower-than-anticipated capital projects investment, the state’s general fund ended December at $49.4 billion, which is $9.7 billion higher than the projections.