New budget year, new deficit for PA

It may be a new fiscal year, but Pennsylvania is stuck in the same fiscal rut. The state is spending more money than it takes in. That practice led to a record budget deficit last year and caused a 101-day budget impasse.

It appears Gov. Rendell and the Pennsylvania Legislature haven't learned a thing.

New figures released Monday by the Pennsylvania Department of Revenue show fiscal year-to-date General Fund collections total $8.8 billion, which is $160.2 million, or 1.8 percent, below estimate.

The new fiscal year began July 1, although the state Legislature was 101 days late in approving a new budget. The state finished the 2008-09 fiscal year with a $3.25 billion deficit.

From the Revenue Department:

Secretary of Revenue Stephen H. Stetler today reported that Pennsylvania collected $3.5 billion in General Fund revenue in October, which was $19.5 million, or 0.6 percent, less than anticipated.

Fiscal year-to-date General Fund collections total $8.8 billion, which is $160.2 million, or 1.8 percent, below estimate.

Sales tax receipts totaled $696.6 million for October, $37 million below estimate. Year-to-date sales tax collections total $2.7 billion, which is $89.3 million, or 3.2 percent, less than anticipated.

Personal income tax (PIT) revenue in October was $719.9 million, $13.7 million above estimate. This brings year-to-date PIT collections to $2.9 billion, which is $84.2 million, or 2.8 percent, below estimate.

October corporation tax revenue of $116.6 million was $500,000 above estimate. Year-to-date corporation tax collections total $658 million, which is $7.8 million, or 1.2 percent, above estimate.

Other General Fund revenue figures for the month included $61.2 million in inheritance tax, $800,000 above estimate, bringing the year-to-date total to $242.8 million, which is $5.3 million below estimate.

Realty transfer tax was $26.1 million for October, $1.4 million above estimate, bringing the total to $108.3 million for the year, which is $2.3 million less than anticipated.

Read the full release at the link below:

PA Revenue Department Releases October Collections

Originally posted at TONY PHYRILLAS