DiNapoli Sees Tax Money Flowing In But Maybe Not For Long
The state’s fiscal year got off to a good start last month but Controller Thomas DiNapoli isn’t sold on the notion that New York is out of the fiscal woods just yet.
In his latest monthly report on the state of New York’s finances, DiNapoli reported Friday that total state collections in April soared to $8.6 billion, a 25.2% increase from April of 2012 and $85.9 million above the figure projected in the budget.
But DiNapoli sees the surge in collections more as a one-time blip than a long term trend. “The state’s new fiscal year started strong but we are unlikely to see PIT collections continue at this pace,” DiNapoli said in a press release accompanying the report. “The growth in these collections comes primarily in April tax settlements from individuals who accelerated income to avoid federal tax changes that took place in January," he continued. "Economic signs are mixed, and while the financial markets are strong, the state must watch spending and trends carefully.”
DiNapoli reported that New York ended April with a closing balance of $6.4 billion in its general fund, about $71.3 billion lower than projected. This was mostly caused by monthly spending that was $191.1 million higher than anticipated.
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