New York's tax revenue collections were slightly below projections for the first six months of the year, according to a report released Friday by Comptroller Thomas DiNapoli.

For the first half of the state's fiscal year 2012-13, tax collections were 0.2% lower than last year and $213 million short of projections.

"We are not seeing the level of growth in tax revenues that is needed to meet year-end projections even though targets were lowered," DiNapoli said. "The economic recovery continues to be weak and financial risks remain."

To make up for the lower-than-expected revenue, the state would have to grow its collections by 6.4% for the remainder of the year.

"The state must proceed with caution and carefully monitor revenue and spending," DiNapoli warned.

The state's finances are generally broken down into two main categories. The general fund is the major operating fund of the state and includes accounts for all receipts not required by law to be deposited into another fund. The other category is all funds, which include general, special revenue, debt service, and capital projects funds, as well as funds from the federal government.

All funds tax collections through Sept. 30 totaled $31.6 billion and were $213 million below projections revised downward in June, and $436 million below initial projections.

General fund tax collections totaled $21.5 billion, and were $116.4 million lower than projected. General fund personal income tax collections are below estimated at $13.9 billion - 0.5% lower than last year.

General fund business taxes are up from last year, but below projections. The collections increased by 2.8% from last year, but were $106.7 million below estimates.

General fund consumption taxes are also up from last year by about 0.3%, or $14.3 million.

"Volatile economic conditions and uncertainty in the financial sector threaten current revenue projects," the comptroller said in his report, noting that the state could face potential loss of federal funds because of automatic sequestration under current law enacted by Congress in 2011.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.