DiNapoli Gives Warning on State Fiscal Outlook
So far this year the New York State tax receipts are below what was expected, which may result in budget gaps. Federal funding cuts, he said, are a cause for concern.
State tax collections totaled $36.1 billion through the first half of New York’s 2017-18 fiscal year, $386.6 million below the latest projections, largely because of lower than expected personal income tax collections, according to a report released today by State Comptroller Thomas P. DiNapoli. Tax collections through the first six months declined 2.1 percent, or $767.9 million, from the same period last year.
New York faces serious fiscal challenges. Projected budget gaps, weaker than expected personal income tax collections and cuts to federal programs combine for a triple threat of budgetary risks, DiNapoli said. Any federal funding reductions not already assumed in the Financial Plan could force difficult decisions regarding the funding of important programs and
The General Fund balance as of Sept. 30 was $6.5 billion. That figure was $21.8 million below the latest Financial Plan projection, released by the Division of the Budget in August, and $3 billion lower than the balance from a year earlier, both of which largely reflected monetary settlement receipts in recent years.
The most recent Financial Plan projected a budget gap of $4.1 billion for the coming fiscal year before any budgetary actions to address the gap. If tax receipts continue to fall below projections, next year’s projected gap may grow.