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New York Is Officially Broke

July 20, 2010

York State Officially Broke

NY Taxpayers Say — Don’t Look at Us. Cut the Spending

The state is now officially in the red.

State Comptroller Tom DiNapoli just released the June Cash report for the general fund. And for only the second time in modern history (according to the press release) New York ended the first fiscal quarter with a negative balance of $87.1 million.

“There are fiscal storm clouds rolling in. The next school aid payments are due in September, and New York’s cash umbrella may not be big enough,” DiNapoli said. “The state could, once again, be seriously in the red. Final action on a complete budget is needed and we must continue to closely monitor spending and revenues.”

Here is a break down of the report:

REVENUES
• Through June 30, General Fund receipts, including transfers from other funds, were $12.7 billion, $15.3 million or 0.1 percent below the same period last year, primarily because of collections of miscellaneous receipts and transfers from other funds.
• Total General Fund tax collections through June 30 were $9.4 billion, up $271.7 million, or 3 percent, from last year. When adjusted for non-recurring actions, tax collections were 13.3 percent higher than collections from the first quarter last year.
• Year-to-date unadjusted General Fund Personal Income Tax collections were $6 billion, $348 million or 6.1 percent above last year. Withholding collections, the General Fund’s largest revenue source, increased 11.9 percent from the same period last year.
• Year-to-date General Fund consumption tax collections, including sales taxes, were $2.1 billion, $118.9 million or 6 percent above collections from the same period last year. Sales tax collections were $1.9 billion, $111.4 million or 6.1 percent more than last year.
• Year-to-date General Fund business tax collections were $977.5 million, $262.8 million less than collections for the same period last year, primarily due to unusually large collections for bank taxes in June 2009. Miscellaneous receipts were $441.6 million, $107.7 million below collections from last year.
• All Governmental Funds receipts through June 30 were $30.2 billion, $1.9 billion or 6.7 percent more than last year for the same period, primarily due to federal receipts (up $1.5 billion) and tax collections (up $534.3 million). However, collections also include such things as the Metropolitan Transportation Authority’s commuter tax, Taxicab medallion user tax, an additional auto rental tax as well as collections associated with various tax increases which were not collected last year. In addition, non-recurring actions including refunds paid this year and a payment from New York City last year.
• Total unadjusted tax collections were $14.3 billion, up $534.3 million, or 3.9 percent, from last year, which again reflects not only normal growth, but also new collections from the Metropolitan Transportation Authority’s Commuter tax and Taxicab medallion user tax and the non-recurring actions previously described. Federal receipts increased by $1.5 billion from last year. Miscellaneous receipts through June 30 were $4.9 billion, $126.1 million less than collections for the same period last year, primarily reflecting the timing of collections and non-recurring resources collected last year that have not occurred this year.

SPENDING
• General Fund spending, including transfers to other funds, was $15 billion, $1.5 billion or 10.7 percent more than last year through June 30. The increase in spending was primarily due to costs for Medicaid (up $1.2 billion due to a variety of reasons including delayed payments, increased utilization and costs and increased costs associated with the state cap on local Medicaid costs) and education (up $991.3 million primarily due to the delayed March 2010 school aid payment that was paid in June). These increases were partially offset by declines in non-personal services spending (down $161.6 million), health and environment (down $156.3 million primarily due to the Federal Government decision to retroactively apply higher FMAP rates for pharmaceutical costs resulting in a temporary suspension of state payments for Medicaid Part D clawback) and other social services (down $143.8 million primarily due to the timing of payments).
• All Governmental Funds spending through June 30 was $31.5 billion, $2.1 billion or 7 percent more than last year for the same period, primarily due to increases in Medicaid ($2.2 billion) and education ($1.6 billion). These increases were partially offset by lower spending in other social services (down $550.3 million) and general state charges ($402.4 million).

www.capitoltonight.com

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One Comment
  1. timraffety permalink

    And still caesar fiddles as rome burns. I love every minute.

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