Elmont Online

ALBANY -- Tax revenues in the first quarter of the fiscal year are up and state coffers contain more money than had been anticipated, Comptroller Tom DiNapoli said Wednesday.

But that doesn't mean New York is in the clear financially, he stressed. The budgetary picture remains cloudy due to the end of federal stimulus assistance and forecasts of a stagnant economy moving forward.

"Our fiscal health is tenuous," DiNapoli said in a statement accompanying release of the June Cash Report. The first quarter of the state's fiscal year runs April through June.

Tax collections were $799 million more than the budget predicted; business taxes were up 32 percent compared with last year. Overall, the state's General Fund closed out June with a $2.5 billion balance, which was $2 billion above projections.

State spending was down $458 million, or 3 percent compared with the same period last year, due in part to delays in payments for education and Medicaid.

Personal income tax collections through June 30 were up 30 percent, or $1.8 billion more than last year, for a total of $7.8 billion.

That was $367 million more than budget projections.

In cautionary mode, DiNapoli noted that June marked the last month of payments from the federal stimulus. And forecasters predict that the broader economy -- including housing prices and a troubled national and international outlook -- isn't expected to turn around anytime soon.

Additionally, the Comptroller's cash on-hand reports can be greatly affected by the timing of certain payments. Some businesses taxes, for example, may come in a bit earlier in the fiscal year than in years past, but that doesn't mean there will be a lot more money on hand at the end of the fiscal year.

Wednesday's cash report wasn't the first indication that government finances are on a slightly better footing than in recent years. Earlier this month, the Rockefeller Institute of Government found that tax revenues for states across the nation grew 9.3 percent during the first quarter of 2011.

That report cautioned that some of the increases nationwide stemmed from tax hikes.

In New York, income tax rates on high earners rose in 2009, but are scheduled to drop at the end of this year. The 2009 surcharge brought the state's top income tax rates to 8.97 percent for those earning more than $500,000 and 7.85 percent for those who make between $200,000 and $500,000.

After December, that is scheduled to drop to the pre-surcharge rate of 6.85 percent.

Reach Rick Karlin at 454-5758 or This e-mail address is being protected from spambots. You need JavaScript enabled to view it .