DiNapoli: Good News and Bad News
July 20th, 2011

Comptroller Tom DiNapoli reported today that income from both personal income tax and business tax is ahead of schedule for the year. $799 million ahead of where the state was budgeted to be at this point. But DiNapoli issued a warning that the state is not exactly on steady fiscal legs.

Revenue collections in the first quarter were strong, but our fiscal health is tenuous, DiNapoli said. We received the last of the significant federal stimulus funding in June, and the temporary PIT surcharge ends in the third quarter this year. The federal debt limit crisis, weakness in the housing market, and international financial and political instability continue to pose threats to the recovery. The Blue Chip consensus economic forecasts for growth continue to be revised downward. State leaders need to focus on diversifying our economic base, creating jobs, and rebuilding reserves to prepare the state for any fiscal difficulties ahead.

The state’s general fund also did better than expected–ending June with $2.5 billion–$2 billion more than estimated in the enacted budget fiscal plan.

By on July 20, 2011, 2:18 pm
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