As New York's economy was in the process of reopening last month, state tax revenue still lagged, a report released Thursday by Comptroller Tom DiNapoli's office found.
Tax receipts in June were down $1.5 billion from the previous year, missing the mark by 17.3 percent.
“As steps toward an economic reopening continue, state tax revenues remain far short of pre-pandemic levels,” DiNapoli said. “Currently, state spending is well below projections, as the Division of the Budget withholds some payments in response to fiscal uncertainty. All eyes are on Washington. New York and its localities badly need more federal aid if they are to respond fully to the COVID-19 crisis.”
The lack of revenue could change as more people file their income taxes this month. The state and federal tax deadline was delayed to July 15 this year due to the pandemic.
But the hit to the economy is expected to be a sustained one, with the joblessness rate still at double digits.
The state government is withholding millions of dollars in aid to local governments, substance abuse programs and other areas of the budget while awaiting potential federal aid to come through to bolster its financial footing.
County governments are also facing financial strains as sales tax revenue has evaporated.
Meanwhile, progressive advocates are increasing their push to have the state raise taxes on the wealthy next year to make up the shortfall in lost revenue.
Gov. Andrew Cuomo in a conference call on Thursday said he would prefer a national tax increase on the rich, and challenged Democrats in Congress to back it.
"If they want a tax increase, don't let New York do a tax increase and people move to Connecticut," Cuomo said. "Let them apply it all across the country so you don't hurt any one state."
State tax receipts in June were down $1.5 billion or 17.3 percent from the previous year, according to the monthly state cash report released by State Comptroller Thomas P. DiNapoli.
“As steps toward an economic reopening continue, state tax revenues remain far short of pre-pandemic levels,” DiNapoli said. “Currently, state spending is well below projections, as the Division of the Budget withholds some payments in response to fiscal uncertainty. All eyes are on Washington. New York and its localities badly need more federal aid if they are to respond fully to the COVID-19 crisis.”
Other items of note in the report:
- June tax receipts were $475 million below DOB’s latest projections, with shortfalls in personal income, consumption and business taxes.
- For the combined “measurement period” of May and June, as defined in this year’s enacted budget, State Operating Funds tax receipts were 93.7 percent of the level projected in the Enacted Budget Financial Plan, while State Operating Funds disbursements were 69.2 percent of the anticipated amount.
- All Funds spending through June was $6.3 billion below Financial Plan projections, with Local Assistance disbursements representing $5.7 billion of that total.
- Unemployment Insurance payments in June totaled just under $13.5 billion, compared to $135.6 million a year earlier.
- The General Fund ended the month with a balance of $6.9 billion, $5.1 billion higher than the latest projection by DOB.