State Ends Fiscal Year ‘Stable’ Despite Economy, Hurricane Sandy

Despite unexpected costs from Hurricane Sandy and a weaker than expected economy, New York State ended state fiscal year 2012-13 in a stable cash position compared to recent years, according to an end of the year report released Monday by New York State Comptroller Thomas DiNapoli.

Tax collections ended the year at $66.3 billion, $378.2 million higher than February projections but $70 million below initial projections. Overall, tax collections increased by $2 billion, or 3.1 percent, from state fiscal year 2011-12 results, primarily because of stronger than anticipated personal income tax collections in December and January.

Federal tax law changes prompted many high income earners to accelerate income as well as investment returns into 2012 to avoid paying higher taxes. While personal income tax collections ended the year 3.8 percent higher than last year, growth through Nov. 30 was only 0.6 percent.

All Funds spending of $133.1 billion was $2.5 billion lower than February projections largely because of the timing of spending related to disaster assistance for Superstorm Sandy that was originally planned for March 2013.