Dinapoli RELEASES YEAR-END CASH REPORT

DiNAPOLI RELEASES YEAR-END CASH REPORT

State Comptroller Thomas P. DiNapoli today released the year-end cash report representing final results for the 2006-07 fiscal year. The results were consistent with preliminary figures released April 5, 2007.
General Fund disbursements in 2006-07 totaled $51.6 billion after transfers. This represents growth of 11 percent over General Fund disbursements in 2005-06, which totaled $46.5 billion. General Fund receipts in 2006-07 totaled $51.4 billion, an increase of 8.8 percent over receipts in 2005-06 of $47.2 billion.
All Governmental Funds disbursements in 2006-07 totaled $112.8 billion, an increase of 8.1 percent over 2005-06 disbursements of $104.3 billion. Governmental Funds receipts in 2006-07 totaled $112.4 billion, an increase of 5 percent over 2005-06 receipts of $107 billion.
The 2006-07 Financial Plan was revised February 21 by the Executive and actual General Fund receipts and disbursements, before transfers, were within $5 million and $77 million, respectively of the projections made at that time. However, certain individual receipt components had significant variances as did transfers from the General Fund when compared to the February Financial Plan.
The year-end closing balance in the General Fund was $3.045 billion, or $562 million, less than anticipated in the February Financial Plan. The closing balance is comprised of $1.031 billion in the Tax Stabilization Reserve Fund, $278 million in the Community Projects Fund, $21 million in the Contingency Reserve Fund, and $1.714 billion in the Refund Reserve Fund.
The lower than anticipated General Fund balance was mainly due to the following factors: miscellaneous receipts were nearly $400 million lower than anticipated, primarily due to local government revenue and disbursement program receipts that were not received; an additional $424 million in transfers were made from the General Fund to special revenue funds in order to make payments for education and capital projects. This was partially offset by higher than expected business and personal income tax collections.
General Fund Receipts and Disbursements
General Fund tax collections grew 9.5 percent between 2005-06 and 2006-07, from $35.3 billion to $38.7 billion, primarily due to increased collections in business and personal income taxes. Personal income tax receipts, prior to transfers into dedicated funds, were up $3.8 billion, or 12.2 percent, from last year, growing from $30.8 billion to $34.6 billion. Withholdings, the largest component of personal income tax receipts, were $26.8 billion in 2006-07, or 8.2 percent higher than in 2005-06; estimated payments were $10.4 billion in 2006-07, or 13.1 percent higher than 2005-06. Personal income tax collections were $112 million, or 0.5 percent, higher than anticipated in the February Financial Plan update.
Business taxes were 27.2 percent higher in 2006-07 than in 2005-06, increasing from $5.1 billion to $6.5 billion. The increase is primarily due to growth in corporation franchise tax collections, which increased 38 percent from 2005-06 to 2006-07, from $2.7 billion to $3.7 billion. Higher corporate earnings, along with increased audit collections, were the main contributors to this growth. Business tax collections were $441 million, or 7.3 percent, higher than February Financial Plan projections.
Consumption and use taxes decreased 5.2 percent, from $8.6 billion in 2005-06 to $8.2 billion in 2006-07. This is primarily due to the sales tax, the largest component of the consumption and use tax category, which declined $439 million, or 5.5 percent, to $7.5 billion, largely due to the permanent tax exemption on clothing and footwear which took effect April 1, 2006. Other consumption and use tax collections, such as those on cigarettes and alcoholic beverages, showed slight increases year-to-year. Total consumption and use tax collections were nearly $120 million below February Financial Plan projections, a decline of 1.4 percent.
Miscellaneous receipts increased $239 million, or 11.8 percent, primarily due to increased revenues from abandoned property and interest earnings. However, miscellaneous receipt collections were $397.4 million below February Financial Plan projections, mainly due to the planned collection of $428 million to a local government revenue and disbursement program (i.e. Intergovernmental Transfer) that did not materialize.
Federal receipts of $152 million fell $29 million short of the $180 million expected Medicare Part D reimbursements to the State.
General Fund disbursements, including transfers to other funds, totaled $51.6 billion, an increase of $5.1 billion, or 11 percent, over the 2005-06 disbursements total of $46.5 billion. Local Assistance payments, the largest category of General Fund disbursements, grew $3.0 billion, or 9.6 percent, from $31.3 billion to $34.3 billion. Local assistance spending was $118 million, or 0.3 percent, above February Financial Plan projections.
The largest increase in local assistance payments was $1.8 billion in Education disbursements, primarily due to increased state aid to public schools. This is followed by an $880.7 million increase in Health and Environment spending, primarily due to prescription drug costs associated with the implementation of the federal government’s Medicare Part D program.
Departmental Operations disbursements in 2006-07 were slightly below February Financial Plan projections and were 14.2 percent higher than in 2005-06. The increase is attributable to the payment of a retroactive arbitration award to correction officers in 2006-07, previously negotiated contractual salary increases and regular movement of employees through grade levels.
General State Charges increased 10.8 percent, or $428 million, over 2005-06 levels. This amount was $52 million higher than Financial Plan projections. The year-over-year increase is largely attributable to pension fund contributions ($130.9m), health and dental insurance premiums ($219.4m), employer taxes ($41m) and court of claims judgments against the state ($35.8m).
Transfers out of the General Fund to support spending in other funds were $424 million over February Financial Plan projections. This variance is primarily related to $167 million to support an earlier than anticipated debt service payment to the Dormitory Authority and $150 million in unplanned transfers to the Capital Projects Fund in lieu of anticipated public authority bond proceeds that had not been received.
Total Governmental Funds Receipts and Disbursements
Total Governmental Fund receipts in 2006-07 were $112.4 billion, an increase of $5.4 billion, or 5 percent, over 2005-06 and $757 million below February Financial Plan projections. Personal income tax receipts were the largest component of the year-to-year increase, growing $3.8 billion to $34.6 billion. Business taxes grew 21.4 percent from $7.1 billion to $8.6 billion.
Consumption/use taxes declined by $400.4 million or 2.9 percent, primarily due to the permanent sales tax exemption on clothing and footwear. Cigarette tax collections in 2006-07 totaled $984.7 million, and motor vehicle fees totaled $769.2 million, representing an increase of $49.1 million from 2005-06.
Miscellaneous Receipts declined from $18.3 billion in 2005-06 to $18.1 billion in 2006-07, primarily due to lower Empire conversion proceeds received in 2005-06 that were not received in 2006-07. A $500 million transfer of conversion proceeds from the Public Asset Fund to the HCRA resource Fund was scheduled for late March but did not take place until April 3. Federal Grants increased 1.3 percent, from $35.1 billion to $35.6 billion.
Total Governmental Funds disbursements in 2006-07 totaled $112.8 billion, an increase of 8.1 percent, over 2005-06 disbursements of $104.3 billion. This amount was $768 million below Financial Plan projections. Local Assistance grants rose $5.7 billion, or 7.6 percent, to $80.7 billion. This increase is largely a result of an additional $2.2 billion in education spending, $1.2 billion in social services spending, and $1 billion in health and environment spending.
The increase in disbursements for education, from $25.8 billion to $28 billion, is related to an increase in state aid payments in support of public schools, along with payments for Title I programs, the School Tax Relief (STAR) program, and for education aid to physically handicapped children. The 27.7 percent increase in health and environment disbursements is primarily related to the full year impact of on-budget spending in 2006-07 for HCRA-related programs and prescription drug costs associated with the implementation of the federal government’s Medicare Part D program, Governmental Funds disbursements for Departmental Operations increased 6.8 percent in 2006-07, to $17.6 billion. General State Charges increased 10.6 percent, to $5.2 billion. Debt Service payments increased 20.3 percent from $3.7 billion in 2005-06 to $4.5 billion in 2006-07, primarily due to refinancing and restructuring of existing debt that temporarily lowered debt service payments in prior years. Disbursements on Capital Projects rose 8.1 percent, from $4.4 billion to $4.8 billion.
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Comparison of
SFY 2005-06 Actual Results
vs.
SFY 2006-07 Actual Results
General Fund (in millions of dollars)
SFY 2005-06 Actual / SFY 2006-07 Actual / Dollar Change / Percent Change
Opening Fund Balance (April 1) / 2,546 / 3,257 / 711 / 27.9%
Receipts:
Taxes / 35,305 / 38,668 / 3,364 / 9.5%
Personal Income Tax / 20,700 / 22,940 / 2,240 / 10.8%
Consumer Taxes and Fees / 8,639 / 8,186 / (453) / -5.2%
Business Taxes / 5,084 / 6,468 / 1,384 / 27.2%
Other Taxes / 882 / 1,075 / 194 / 22.0%
Miscellaneous Receipts / 2,018 / 2,268 / 250 / 12.4%
Federal Grants / 11 / 152 / 141 / 100.0%
Sub-Total / 37,333 / 41,087 / 3,754 / 10.1%
Transfers from Other Funds / 9,873 / 10,292 / 419 / 4.2%
Total Receipts / 47,206 / 51,379 / 4,173 / 8.8%
Disbursements:
Grants to Local Governments / 31,287 / 34,302 / 3,015 / 9.6%
State Operations / 8,160 / 9,319 / 1,159 / 14.2%
General State Charges / 3,975 / 4,403 / 428 / 10.8%
Sub-Total / 43,423 / 48,025 / 4,602 / 10.6%
Transfers to Other Funds / 3,072 / 3,567 / 495 / 16.1%
Total Disbursements / 46,495 / 51,591 / 5,097 / 11.0%
Changes in Fund Balance / 711 / (212)
Closing Fund Balance (March 31) / 3,257 / 3,045 / (212) / -6.5%
Statutory Reserves
Tax Stabilization Reserve Fund / 944 / 1,031 / 87 / 9.3%
Contingency Reserve Fund / 21 / 21 / - / 0.0%
Community Projects Fund / 251 / 278 / 27 / 10.8%
Refund Reserve
2005-06 and 2006-07 Surplus / 2,041 / 1,714 / (327) / -16.0%
Comparison of
SFY 2006-07 Projected Results
vs.
SFY 2006-07 Actual Results
General Fund (in millions of dollars)
SFY 2006-07 Projected (1) / SFY 2006-07 Actual / Dollar Difference / Percent Difference
Opening Fund Balance (April 1) / 3,257 / 3,257 / 0 / 0.0%
Receipts:
Taxes / 38,237 / 38,668 / 431 / 1.1%
Personal Income Tax / 22,828 / 22,940 / 112 / 0.5%
Consumer Taxes and Fees / 8,305 / 8,186 / (119) / -1.4%
Business Taxes / 6,027 / 6,468 / 441 / 7.3%
Other Taxes / 1,077 / 1,075 / (2) / -0.2%
Miscellaneous Receipts / 2,665 / 2,268 / (397) / -14.9%
Federal Grants / 180 / 152 / (29) / -15.8%
Sub-Total / 41,082 / 41,087 / 5 / 0.0%
Transfers from Other Funds / 10,359 / 10,292 / (67) / -0.6%
Total Receipts / 51,441 / 51,379 / (62) / -0.1%
Disbursements:
Grants to Local Governments / 34,184 / 34,302 / 118 / 0.3%
State Operations / 9,413 / 9,319 / (94) / -1.0%
General State Charges / 4,351 / 4,403 / 52 / 1.2%
Sub-Total / 47,948 / 48,025 / 77 / 0.2%
Transfers to Other Funds / 3,143 / 3,567 / 424 / 13.5%
Total Disbursements / 51,091 / 51,591 / 500 / 1.0%
Changes in Fund Balance / 350 / (212)
Closing Fund Balance (March 31) / 3,607 / 3,045 / (562) / -15.6%
Statutory Reserves
Tax Stabilization Reserve Fund / 1,025 / 1,031 / 6 / 0.6%
Community Projects Fund / 276 / 278 / 2 / 0.8%
Contingency Reserve Fund / 21 / 21 / - / 0.0%
Refund Reserve
2005-06 and 2006-07 Surplus / 2,285 / 1,714 / (571) / -25.0%
(1) Source: DOB, 2007-08 Executive Budget with 21-day changes dated February 21, 2007.
Comparison of
SFY 2005-06 Actual Results
vs.
SFY 2006-07 Actual Results
All Governmental Funds
(in millions of dollars)
SFY 2005-06 Actual / SFY 2006-07 Actual / Dollar Change / Percent Change
Opening Fund Balance (April 1) / 4,281 / 7,068 / 2,787 / 65.1%
Receipts:
Taxes / 53,578 / 58,740 / 5,162 / 9.6%
Miscellaneous Receipts / 18,320 / 18,078 / (242) / -1.3%
Federal Grants / 35,129 / 35,579 / 450 / 1.3%
Total Receipts / 107,027 / 112,397 / 5,370 / 5.0%
Disbursements:
Grants to Local Governments / 75,036 / 80,725 / 5,689 / 7.6%
State Operations / 16,443 / 17,558 / 1,115 / 6.8%
General State Charges / 4,728 / 5,236 / 508 / 10.7%
Debt Service / 3,701 / 4,451 / 749 / 20.2%
Capital Projects / 4,434 / 4,795 / 362 / 8.2%
Total Disbursements (1) / 104,341 / 112,764 / 8,423 / 8.1%
Other Financing Sources (uses):
Transfers from Other Funds / 19,176 / 20,203 / 1,027 / 5.4%
Transfers to Other Funds / (19,234) / (20,231) / (997) / 5.2%
Bond and Note Proceeds / 159 / 181 / 22 / 14.0%
Net Other Financing Sources (uses) / 101 / 153 / 52 / 51.5%
Changes in Fund Balance / 2,787 / (214)
Closing Fund Balance (March 31) / 7,068 / 6,853 / (215) / -3.0%
(1) Does not include off-budget capital spending of $1 billion in 2005-06 and $1.7 billion in 2006-07.
Comparison of
SFY 2006-07 Projected Results
vs.
SFY 2006-07 Actual Results
All Governmental Funds (in millions of dollars)
SFY 2006-07 Projected (1) / SFY 2006-07 Actual / Dollar Difference / Percent Difference
Opening Fund Balance (April 1) / 7,068 / 7,068 / (1) / 0.0%
Receipts:
Taxes / 58,309 / 58,740 / 431 / 0.7%
Miscellaneous Receipts / 18,658 / 18,078 / (580) / -3.1%
Federal Grants / 36,186 / 35,579 / (607) / -1.7%
Total Receipts / 113,153 / 112,397 / (757) / -0.7%
Disbursements:
Grants to Local Governments / 81,180 / 80,725 / (455) / -0.6%
State Operations / 17,885 / 17,558 / (327) / -1.8%
General State Charges / 5,197 / 5,236 / 39 / 0.7%
Debt Service / 4,250 / 4,451 / 201 / 4.7%
Capital Projects / 5,020 / 4,795 / (225) / -4.5%
Total Disbursements (2) / 113,532 / 112,764 / (768) / -0.7%
Other Financing Sources (uses):
Transfers from Other Funds / 20,016 / 20,203 / 187 / 0.9%
Transfers to Other Funds / (20,048) / (20,231) / (183) / 0.9%
Bond and Note Proceeds / 227 / 181 / (46) / -20.2%
Net Other Financing Sources (uses) / 195 / 153 / (42) / -21.5%
Changes in Fund Balance / (184) / (214)
Closing Fund Balance (March 31) / 6,884 / 6,853 / (31) / -0.5%
(1) Source: DOB, 2007-08 Executive Budget with 21-day changes dated February 21, 2007.
(2) Does not include off-budget capital spending.

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