FOR IMMEDIATE RELEASE: July 14, 2023
Media Contact: press@fiscalpolicy.org
June Cash Receipts Continue to Stabilize Following April Volatility
“Stable June tax receipts confirm that the state economy remains strong”
ALBANY, NY | July 14, 2023 — The State Comptroller released its June Cash Report today, showing that June tax receipts came in over projections and over 2022 levels:
- June 2023 receipts: $14.6 billion
- June 2023 projections: $13.7 billion
- June 2022 receipts: $13.3 billion
Following the cash report release, Fiscal Policy Institute Executive Director Nathan Gusdorf released the following statements:
What the cash report says:
“The New York State Comptroller’s June cash basis report shows that tax receipts for the month of June have stabilized after a shortfall in April. The stable June receipts confirm that New York’s tax base and economy remain strong, and that shortfalls in April reflected weaker-than-expected capital gains in tax year 2022 rather than an imminent downturn.
“Total tax receipts for the month of June were 6 percent above projections and almost 10 percent above June 2022 levels. Personal income tax receipts were up 20 percent from their level in June 2022. Business and consumption taxes also remained stable in June, both above projections. Business taxes came in particularly strong, at 4.7 billion, 13 percent above the projection for June 2023 receipts. Though the year-to-date PIT receipts were still 32.8 percent below 2022 receipts at this time of the year, this is due primarily to low April receipts; the receipts in May and June combined show strength and resilience. The month of April remains an outlier due to weak capital gains and volatility from the State’s Pass-Through Entity Tax (PTET).
What the data indicate:
“Stable June tax receipts confirm that the State economy remains strong. The shortfalls in April reflect weak performance in 2022 capital markets, which depressed tax receipts from the 2022 tax year. Capital markets have regained 70 percent of their 2022 declines already since the start of 2023. Further, current labor market indicators remain strong, and personal income tax withholdings have remained robust in this fiscal year.
“At this time, with cash reserves of $19.5 billion, the State is in a good position to meet any future budget gaps by drawing on reserves. Economists at this time are not predicting a recession on the horizon; however if a recession does occur, it is imperative that the State maintain spending on needed social services by drawing on these robust reserves.”
The Fiscal Policy Institute is a nonpartisan, nonprofit research and education organization committed to improving public policies and private practices to better the economic and social conditions of all.
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FOR IMMEDIATE RELEASE: July 14, 2023
Media Contact: press@fiscalpolicy.org
June Cash Receipts Continue to Stabilize Following April Volatility
“Stable June tax receipts confirm that the state economy remains strong”
ALBANY, NY | July 14, 2023 — The State Comptroller released its June Cash Report today, showing that June tax receipts came in over projections and over 2022 levels:
- June 2023 receipts: $14.6 billion
- June 2023 projections: $13.7 billion
- June 2022 receipts: $13.3 billion
Following the cash report release, Fiscal Policy Institute Executive Director Nathan Gusdorf released the following statements:
What the cash report says:
“The New York State Comptroller’s June cash basis report shows that tax receipts for the month of June have stabilized after a shortfall in April. The stable June receipts confirm that New York’s tax base and economy remain strong, and that shortfalls in April reflected weaker-than-expected capital gains in tax year 2022 rather than an imminent downturn.
“Total tax receipts for the month of June were 6 percent above projections and almost 10 percent above June 2022 levels. Personal income tax receipts were up 20 percent from their level in June 2022. Business and consumption taxes also remained stable in June, both above projections. Business taxes came in particularly strong, at 4.7 billion, 13 percent above the projection for June 2023 receipts. Though the year-to-date PIT receipts were still 32.8 percent below 2022 receipts at this time of the year, this is due primarily to low April receipts; the receipts in May and June combined show strength and resilience. The month of April remains an outlier due to weak capital gains and volatility from the State’s Pass-Through Entity Tax (PTET).
What the data indicate:
“Stable June tax receipts confirm that the State economy remains strong. The shortfalls in April reflect weak performance in 2022 capital markets, which depressed tax receipts from the 2022 tax year. Capital markets have regained 70 percent of their 2022 declines already since the start of 2023. Further, current labor market indicators remain strong, and personal income tax withholdings have remained robust in this fiscal year.
“At this time, with cash reserves of $19.5 billion, the State is in a good position to meet any future budget gaps by drawing on reserves. Economists at this time are not predicting a recession on the horizon; however if a recession does occur, it is imperative that the State maintain spending on needed social services by drawing on these robust reserves.”
The Fiscal Policy Institute is a nonpartisan, nonprofit research and education organization committed to improving public policies and private practices to better the economic and social conditions of all.
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