State tax revenue in the first half of the fiscal year is $213 million short of projections and 0.2 percent lower than last year, according to a state comptroller’s office analysis released Friday.
“We are not seeing the level of growth in tax revenues that is needed to meet year-end projections even though targets were lowered,” Comptroller Thomas DiNapoli said in a statement. “The economic recovery continues to be weak and financial risks remain. The state must proceed with caution and carefully monitor revenue and spending.”
Tax collections, amounting to $31.6 billion through Sept. 30, were $213 million below projections, which were lowered in June. Collections are $436 million below initial projections.
Collections were 0.2 percent, or $72.1 million, lower than last year for the same period.
The report found that income tax collections were lower than projected for the period, while consumption taxes—the state’s collections on goods and services—showed small growth.
The state’s general fund personal income taxes were $13.9 billion through September, which is a drop of 0.5 percent, or $64.5 million, from the same time last year. That’s $6 million less than projected, although collections for the month of September exceeded projections by $15.7 million.
Consumption taxes totaled $4.5 billion, an increase of 0.3 percent, or $14.3 million, from the same period last year. Collections were $24.8 million more than the most recent projections, but $107.2 million below the state’s initial expectations.
“Volatile economic conditions and uncertainty in the financial sector threaten current revenue projections,” according to a comptroller’s office news release.
The state had anticipated other revenue sources that it might not now collect, including $250 million in health insurance plan privatization proceeds and $129 million from Native American casinos.
The state also faces the potential loss of federal funds because of spending cuts enacted by Congress in 2011.
DiNapoli predicts that for the sixth consecutive year, the state is unlikely to reach initial projected tax collections.