New York State Comptroller Thomas DiNapoli last week warned that growth in personal income tax revenue was unlikely to continue.
The $1.4 billion increase in revenue reported for fiscal year to date through January was primarily due to settlements of 2007 tax liabilities, DiNapoli said in a cash report.
In the month of January, withholding taxes grew by just 0.3% percent compared to 6.1% in January 2008. Personal income tax receipts totaled $45.5 billion through January.
“Revenue growth is slowing dramatically,” DiNapoli said in a press release. “The federal economic stimulus package will ease some of the pain. But the stimulus package is not a bailout; it’s not a substitute for tough decisions.”
Business tax collections from the April 1 beginning of the fiscal year through January fell by $295.3 million, to $3.9 billion compared to the same period last year.
Overall revenue grew $3.3 billion through January compared to the first month of 2008, a 3.6% increase, due to growth in federal receipts as well as personal income tax growth. At the same time, general fund spending grew $2.3 billion to $42.5 billion through January, a 5.8% increase over the same period last year, primarily due to increased spending in education and Medicaid, the report said.
DiNapoli said the state needs achieve structural balance in it budget to maintain long-term fiscal stability.
