(Bloomberg) -- New York State collected $3 billion more tax revenue in the last fiscal year than projected by Governor Andrew Cuomo two months ago, boosted by strong personal income tax receipts, state Comptroller Thomas DiNapoli said.
However, collections for the budget year ending March 31 were $82.4 billion, which is $513.3 million lower than the prior year, as social distancing and lockdowns due to the coronavirus depressed sales tax revenue.
“The state's year-end financial position was significantly better than anticipated,” DiNapoli said in a statement Thursday. “We face a long road to recovery, and the state's economy still faces serious challenges, both in the short-term and long-term.”
States from California to New Jersey avoided dire predictions of fiscal collapse as the federal government pumped $3 trillion into the economy last year through enhanced unemployment benefits, small business loans and direct payments to individuals and families. The surging U.S. stock market and Wall Street's most profitable year since 2009 boosted capital gains tax revenue in New York, New Jersey and Connecticut.
And the federal money will continue to flow. New York state and its localities are slated to get almost $24 billion from President Joe Biden's $1.9 trillion stimulus package. The Empire State passed a $212 billion budget for the fiscal year beginning April 1, almost $20 billion more than Cuomo proposed in his executive budget. Despite the federal largess, New York raised taxes on the richest residents by $2.8 billion.
“State policymakers must ensure that spending commitments are in line with recurring revenue sources,” DiNapoli said.
Personal income tax collections totaled $55 billion last year, exceeding the prior year by $1.3 billion. Consumption and use taxes, which include sales tax receipts, totaled $16.1 billion, a 10.6% decline from the prior year. Business tax collections were $203.4 million lower.
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