A Budget Preview? State Tax Collections Lagging Projections

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Gov. Andrew Cuomo will introduce his 2013-14 budget proposal on Tuesday as state tax collections continue to lag projections for the current year, Comptroller Thomas DiNapoli said today.

State tax collections through December were off $48.3 million from the state’s most recent estimates and $685.3 million below initial estimates in April, DiNapoli said. Tax collections through December totaled $46.4 billion.

What’s troublesome, DiNapoli said, is that the state’s projected tax growth was up just 1.2 percent — and that includes higher income taxes on the wealthy implemented in December 2011. Tax growth was estimated to grow 2.9 percent.

So in order for the state to meet its current year-end projections, it would essentially take a miracle: Collections would have to increase 7.1 percent in the last three months of the fiscal year, which ends March 31.

And, DiNapoli said, the projections do not include any shortfalls from Superstorm Sandy, which crippled the downstate economy on Oct. 29.

DiNapoli said the state also quietly delayed a $2.5 billion School Tax Relief (STAR) payment to schools this month to help balance the books.

“Tax collections are still not growing at the rate needed to meet year-end projections, and the boost in personal income taxes in December likely won’t continue,” DiNapoli said in a statement. “So far the budget has been balanced by spending less and taking advantage of one-time windfalls. With the budget process about to begin again, revenue projections should be realistic so that the budget is not balanced with revenues that won’t be there.”

Cuomo has stuck with a budget gap of $1 billion for the upcoming fiscal year, and he hasn’t changed that projection, despite Superstorm Sandy.

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  1. Ray Nagin another Greedy Progressive Democ”RAT” has been indicted by the “FEDS” and he is not even from New York the Scandal Capital of the World, nor is he a “Regular Democ”RAT”ic State Senator

    He is not even star of “Sex in The Assembly” that smash hit that still has everyone talking and “PAYING THEIR LAWYERS” from campaign funds.

    I wonder under public financing would that be ALLOWED ?

    It would surly hurt all those Democ”RATS” who are under indictment or are under investigation if they could not pay their legal bills with campaign contributions.

    If fact how much campaign money has been spent on lawyers for those who have been indicted in the past say 20 years ?

    Maybe that ace who does all those fancy spread sheets can break it down by parties and public office positions. ?

    BTW Al Sharpton have you paid back all your back taxes and fines ?

    Do you owe New York State or City any Money ?

    If you do we need it badly so PAY UP NOW

    BTW Has the press look into the 990 fillings of the UFT ?

    What type of controls do they have on the spending of money ?

    Do they have their 990 report on their website for all to see ?

    What type of conflict on interest rules do they have in place to prevent self-dealing ?

    In Fact one should check out all the unions 990 fillings and see how they answer those questions.

    You may be SHOCK at what you find.

    Before there was the “Oracle of Delphi” there was Count Vampire J. Machiavelli

    VJ Machiavelli
    http://www.VJMachiavelli.blogspot.com
    Power to the People who “VOTE”