New York State ended its 2011-12 fiscal year with major reductions in structural budget gaps, but tax receipts underperformed expectations for the fifth year in a row, according to a report released by the state comptroller on Monday.
“Last fiscal year, the state experienced a great deal of volatility and state tax collections fell short of projection in seven of the last twelve months. We must carefully monitor the immediate revenue and spending trends, while further addressing the long-term gaps that remain,” Comptroller Thomas DiNapoli said.
The cumulative out-year general fund gap through fiscal 2015-16 is now estimated at $8.5 billion, down 87.2% from the four-year cumulative projection made two years ago.
For the budget year just ended the state addressed a $10 billion projected deficit in its gap-closing plan, which included spending caps of approximately 4% for Medicaid and school aid — the state’s two largest categories of spending.
According to the comptroller’s report, limits on spending growth in Medicaid and school aid, and revenue increases enacted in December, boosted the state’s long-term fiscal outlook and helped it maintain favorable cash-flow conditions during the year.
Tax receipts ended the year $233 million below the most recent projections made in February and $677 million below initial projections, the report also said. The shortfall would have been larger if not for the December tax code changes, which were expected to increase personal income tax collections for fiscal 2011-12 by $385 million. Actual collections resulting from the changes are not yet available.
The general fund ended the fiscal year with a balance of $1.79 billion — up $410.6 million from the balance in 2010-11.
