The state collected $3 billion in General Fund revenue in April, but that was $941.5 million, or 24.2 percent below what state officials projected, according to the Pennsylvania Department of Revenue.
The state has been operating in the red every month since the fiscal year began last July 1, but the April numbers were much higher than previous monthly deficits, which were running about 7 percent below estimates.
Fiscal year-to-date General Fund collections total $21.7 billion, which is $2.6 billion, or 10.5 percent, below estimate, Secretary of Revenue Stephen H. Stetler said.
Gov. Ed Rendell had been predicting a $2.3 billion deficit by the end of the current fiscal year on June 30, but the April numbers will probably send the deficit past the $3 billion mark.
"Tax revenues in April are sobering evidence of the harsh effect the national recession has had on Pennsylvania's workers and businesses," Rendell said in a written statement issued late Friday afternoon. "Though Pennsylvania's Personal Income Tax rate is one of the lowest in the nation, it still accounts for nearly 40 percent of our General Fund revenues, and that category alone was 30 percent below estimate."
To close the potential $3 billion gap, Rendell said he wants the Legislature to tap into the state's Rainy Day Fund, which contains about $750 million, and the Healthcare Provider Retention Account.
"There are signs the overall economy is heading toward recovery, but this is a very volatile time and the pain of this recession is widespread," Rendell said.
Previous measures Rendell took to control state spending include a hiring freeze, which has been violated at least 100 times by his administration, and a ban on out-of-state travel, which has also been ignored by some state officials.
April tax collection revenues were down in every category.
From a report released by Secretary Stetler:
Sales tax receipts totaled $688.4 million for April, $70.9 million below estimate. Sales tax collections, year-to-date, total $6.9 billion, which is $421.2 million, or 5.8 percent, less than anticipated.
Personal income tax (PIT) revenue in April was $1.5 billion, $651.4 million below estimate. This brings year-to-date PIT collections to $8.7 billion, which is $1 billion, or 10.6 percent, below estimate.
April corporation tax revenue of $493.5 million was $123.2 million below estimate. Year-to-date corporation tax collections total $4.3 billion, which is $491.4 million, or 10.2 percent, below estimate.
Other General Fund revenue figures for the month included $69.5 million in inheritance tax, $8.8 million below estimate, bringing the year-to-date total to $639.1 million, which is $83.7 million below estimate.
Realty transfer tax was $18.5 million for April, $13.2 million below estimate, bringing the total to $248.7 million for the year, which is $93 million less than anticipated.
Other General Fund tax revenue including cigarette, malt beverage and liquor taxes totaled $89.1 million for the month, $1.7 million below estimate, bringing the year-to-date total to $874.9 million, which is $10.8 million below estimate.
Non-tax revenue totaled $119.5 million for the month, $72.3 million below estimate, bringing the year-to-date total to $43.1 million, which is $422.9 million below estimate.
In addition to the General Fund collections, the Motor License Fund received $330 million for the month, $3.5 million below estimate. Fiscal year-to-date collections for the fund total $2.2 billion, which is $105.5 million, or 4.6 percent, below estimate.
Originally posted at TONY PHYRILLAS
