State tax revenue for fiscal year 2021-22 $3.3 billion over final projections
Sat Apr 16, 2022 1:30 p.m.
Tax revenue for the state fiscal year (SFY) 2021-22 totaled $121.1 billion, or $3.3 billion more than the Budget Division projected in the Executive Budget Fiscal Plan amended released in February, and more than $30 billion higher than DOB’s original May 2021 forecast, according to the March State Treasury Report released this week by New York State Comptroller Thomas P. DiNapoli.
Tax collections for the 2021-22 EFY were $38.8 billion higher than the prior year. However, revenue for fiscal year 2021-22 includes $16.4 billion in tax revenue from the new tax on transmitting entities (PTET), which was not included in the budget projections adopted for the fiscal year. 2021-22. The Budget Division expects TFWP revenue to be offset by lower personal income tax (PIT) collection in subsequent years. Excluding TFWP, overall tax revenue was $13.6 billion higher than originally forecast in May 2021.
“The state ended the fiscal year in a strong position due to higher-than-expected revenue and lower-than-expected spending,” DiNapoli said. “I am pleased to see that deposits have been made to the rainy day fund reserves to set aside some of the state gains. Pursuing plans to increase these formal reserves should remain a priority in light of continuing economic challenges and significant new spending commitments recently made in the enacted budget.
IRP collections totaled $70.7 billion, exceeding prior year collections by $15.7 billion, or 28.5%. IRP collections exceeded February Financial Plan projections by $2.6 billion and Enacted Budget projections by $9.7 billion, supported by heavy withholdings as well as a day of additional collection in March.
Consumption and use taxes, which include sales tax revenue, totaled $19.6 billion, topping the previous year’s total of $3.5 billion, or $21.7 %. Collections were $363.3 million higher than last projections and just under $1.5 billion higher than initial projections.
Business tax receipts totaled $27.7 billion, up $18.9 billion from the previous year. This includes $16.4 billion in the TFWP (which is expected to be offset by reduced PIT revenue in subsequent years). Excluding PTET, annual growth would have been $2.5 billion, or 28.5%. Total business tax revenue exceeded the latest projections by $5.6 million and the initial projections by $18.1 billion. Without the TFWP, business tax revenues would have exceeded the latest projections by $285 million and the initial projections by $1.7 billion.
All fund expenditures totaled $209.3 billion, up $22.8 billion, or 12.2%, from last year. Total expenditures were $3.6 billion lower than the most recent projections and $452.4 million higher than the initial projections. The General Fund ended the year with a balance of $33.053 billion, an increase of $23.9 billion over the opening balance. This includes $4.5 billion in federal fiscal stimulus funds made available through the US bailout. Financial plan management actions taken by DOB at the end of the year include:
√ $7.6 billion in debt service prepayments and debt cancellation, $4.7 billion more than the most recent forecast;
√ $724 million earmarked for government health insurance expenses;
√ $843 million was deposited into the state’s two rainy day reserves, down $32 million from forecast; and
√ Unrestricted funds in the general fund balance (reserve for reimbursement) totaled $29.7 billion, or $2.6 billion more than planned. This includes $16.4 billion in TFWP revenue.
• March Cash Report