New York’s short-term fiscal outlook has improved, but long-term structural balance remains a “challenge.” That’s according to a report on the state financial plan that State Comptroller Thomas DiNapoli released today.
The comptroller also issued a report on the state’s first-quarter fiscal results, which found “strong” tax-revenue growth so far, but such gains are likely to “moderate” in coming months, according to DiNapoli.
“There’s no doubt New York is in a better budget position now than it was a short time ago,” the state comptroller said in a news release.
(Sponsored)
You Filed Your 2022 Tax Returns, Now Let’s Look Ahead
Another busy tax filing season is behind us and with a return to normalcy this year, without significant processing delays at the Internal Revenue Service (IRS), we can look forward.
Vishing, Phishing, Smishing – What You Need to Know
By Dan Smith Director of Engineering Services It might be tough to keep track of all the different terms for cyber scams these days. First, “phishing” was the term for
“Still, without doing more to align recurring spending with recurring revenue, out-year gaps will likely continue. For years, the state has used one-shots and temporary fixes to pay the bills. This leaves the state more susceptible to disruptive spending cuts and tax increases when unexpected shortfalls arise. While the state is in a reasonably good cash position right now, some of that is a result of temporary measures,” DiNapoli said.
The state’s budget-financial plan, which the state Division of the Budget prepares, projects budget gaps of $2 billion in fiscal year 2014-15 and $2.9 billion in each of the following two years, which are lower than projections from Gov. Cuomo’s earlier proposed budget.
However, DiNapoli contends, if temporary measures are allowed to expire, and barring “significant” economic expansion, future gaps could reach $6 billion or more, according to the comptroller’s report.
Through the first quarter of the 2013-14 fiscal year, the state collected taxes in an amount that was $321 million higher than projected in this year’s financial plan, according to the DiNapoli report.
It included growth in all major tax areas and $2.6 billion, or 15.2 percent, higher than the same period last year, the report said.
Personal income-tax collections increased 21.1 percent from a year ago, DiNapoli said. However, much of the growth came from April tax settlements paid by high-income earners in the state who were able to accelerate salary and capital gains to avoid federal-tax changes that took effect in January, the comptroller said.
Of the $2.6 billion increase in New York state tax collections through June 30, almost $2 billion is attributable to estimated tax payments on prior-year liabilities. Because of that, the high rate of growth is not likely to continue, DiNapoli said.
Contact Reinhardt at ereinhardt@cnybj.com
