New York State tax revenue was off the mark in May

New York State tax revenue is below projections in the new fiscal year after a sluggish May.

May’s tax collections totaled just under $11 billion and were down 8.8% from the same period last year and $62.3 million below the latest budget projections, according to cash report released Tuesday by New York State Comptroller Thomas DiNapoli. Total tax receipts for the first two months of the fiscal year that started April 1 numbered $22.5 billion and are $224 million below budget estimates. DiNapoli attributed the decline to lower personal income tax collections that were partially offset by increased business taxes and $350 million monetary settlement.

“The state's tax revenues did not make up ground in May and are still more than $1 billion lower than last year at this point," said DiNapoli in a statement. "While personal income tax collections are still well below last year's collections, quarterly estimated tax payments due in June should provide more insight on how current economic conditions are affecting individuals and companies, which in turn impacts state revenues.”

The state’s general fund ended May with a balance of $3.1 billion, a $4.5 billion drop from a year earlier and the lowest month-end balance since March 2014, according to DiNapoli. Spending for the first two months of the year is up 19.1% at $27.1 billion which DiNapoli said was a result of a $2 billion increase for Medicaid and $1.1 billion on education.

New York State tax collections finished the 2017 fiscal year down 0.4% at $74.4 billion and were $600 million less than DiNapoli’s revenue projections released in February. New York’s general obligation bonds are rated Aa1 by Moody’s Investors Service and AA-plus by S&P Global Ratings, Fitch Ratings and Kroll Bond Rating Agency.