May 1, 2017

UPDATED: AP: State Budget Deficit For Current Year Now Tops $1.2 Billion

The Associated Press reported Monday state revenues for the current FY 2016-17 fiscal year fell $537 million below estimates in April bringing the year-to-date state deficit to over $1.2 billion, worse than projected earlier.
The Department of Revenue confirmed the report later in the day saying the state collected $3.4 billion in General Fund revenue, which was $537.1 million, or 13.5 percent, less than anticipated.
Fiscal year-to-date General Fund collections total $25.8 billion, which is $1.2 billion, or 4.5 percent, below estimate.
On January 26, the Independent Fiscal Office estimated the FY 2016-17 deficit would be $912 million, but that included $524 million in supplemental appropriations, which the current numbers do not.  The estimated deficit for FY 2017-18 was then projected to be just over $2 billion.
The Independent Fiscal Office will issue its own revised revenue projections at a briefing Tuesday at 2:00 p.m.  The briefing will be aired live on the PA Cable Network.
The Ugly Details
Sales tax receipts totaled $831 million for April, $58.3 million below estimate. Year-to-date sales tax collections total $8.2 billion, which is $190 million, or 2.3 percent, less than anticipated.
Personal income tax (PIT) revenue in April was $1.8 billion, $181.5 million below estimate. This brings year-to-date PIT collections to $10.5 billion, which is $324.7 million, or 3 percent, below estimate.       
April corporation tax revenue of $238.5 million was $227.4 million below estimate. Year-to-date corporation tax collections total $3.9 billion, which is $577.4 million, or 12.8 percent, below estimate. A law change shifted the due date for corporate net income tax from April to May. Most of the corporation tax shortfall in April will be recovered in May.
Inheritance tax revenue for the month was $80.2 million, $8 million below estimate, bringing the year-to-date total to $771.6 million, which is $22.6 million, or 2.9 percent, below estimate.
Realty transfer tax revenue was $34.1 million for April, $9.7 million below estimate, bringing the fiscal-year total to $377.3 million, which is $67.8 million, or 15.2 percent, less than anticipated.
Other General Fund tax revenue, including cigarette, other tobacco products, malt beverage, liquor and table games taxes, totaled $183.5 million for the month, $19.6 million above estimate and bringing the year-to-date total to $1.5 billion, which is $10.7 million, or 0.7 percent, above estimate.
Non-tax revenue totaled $215.1 million for the month, $71.8 million below estimate, bringing the year-to-date total to $553.7 million, which is $44.5 million, or 7.4 percent, below estimate.
In addition to the General Fund collections, the Motor License Fund received $278.8 million for the month, $19.6 million above estimate. Fiscal year-to-date collections for the fund – which include the commonly known gas and diesel taxes, as well as other license, fine and fee revenues – total $2.2 billion, which is $700,000 below estimate.
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Related Story:
March Report: State Revenue Down $679.3 Million For Year
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