Comptroller DiNapoli issued the state’s May 2012 Cash Report, which shows that state tax collections through the first two months of State Fiscal Year 2012-13 were $10 billion, $416.4 million higher than projected. However, the Comptroller warned that the unexpected strength in April collections slowed in May.
In a statement, DiNapoli said:
“New York may be in for a turbulent ride if the U.S. economy does not gain momentum and the European crisis escalates. While it is still early in the fiscal year, the last two months of tax collections illustrate the volatility of the economy. This reinforces the need to pay close attention to revenue and spending, and act quickly and decisively if we see significant drops in our tax revenues during the months ahead.”
This is yet another indication that New York continues to face serious economic challenges, and that we need to continue to keep a close eye on state spending and mandates.