From Capitol Confidential:
State tax revenue in the first half of the fiscal year is $213 million short of projections and 0.2 percent lower than last year, according to a state comptroller’s office analysis released Friday.
Collections would have to grow 6.4 percent for the rest of the fiscal year to make up for the lag in expected revenue, the analysis said.
“We are not seeing the level of growth in tax revenues that is needed to meet year-end projections even though targets were lowered,” Comptroller Thomas DiNapoli said in a statement. “The economic recovery continues to be weak and financial risks remain. The state must proceed with caution and carefully monitor revenue and spending.”
Tax collections, amounting to $31.6 billion through Sept. 30, were $213 million below projections, which were lowered in June. Collections are $436 million below initial projections.
Collections were 0.2 percent, or $72.1 million, lower than last year for the same period.
The report found that income tax collections were lower than projected for the period, while consumption taxes—the state’s collections on goods and services—showed small growth.
DiNapoli predicts that for the sixth consecutive year, the state is unlikely to reach initial projected tax collections.