Last Friday, Comptroller Tom DiNapoli released the state’s monthly cash report, which looks at actual state revenues and spending. According to the report, state tax revenues through the first four months of the State’s fiscal year came in $17.7 million lower than the Division of the Budget’s latest projections but more than $1 billion higher than originally forecasted due to settlement proceeds.
Comptroller DiNapoli said:
“Personal Income Tax collections remain strong, and one-time settlement funds have temporarily boosted available funds. However, due to increased collections from historically volatile sources and the one-shot nature of billions of dollars in settlement proceeds, it is important to closely monitor results as the year progresses to ensure the state’s fiscal picture stays on track.”
While most people do not pay too much attention to these monthly reports, they provide some important indications of the health of our economy. New Yorkers are much better off when tax revenues are increasing, because in most cases it reflects a healthy, growing economy. We can’t count on court settlements, and need our elected officials to be mindful that they are “one time” sources of revenue.