by Anthony Hennen
Pennsylvania’s tax revenues are $129 million short of expectations, though overall collections remain above initial estimates in the latest revenue update from the Independent Fiscal Office.
Even though the November collections were 4.5% less than anticipated, the fiscal-year-to-date revenues are about $732 million above estimates, an almost 5% increase.
November collections hit $2.75 billion, with the total for the fiscal year being just shy of $15.7 billion.
Sales taxes were up more than 5% over estimates, and corporate net income taxes exceeded expectations by almost 3%. The shortfall mainly came from personal income tax collections, which the IFO blamed on a delay caused by a tax modernization project in the Department of Revenue. Those funds, about $200 million, are expected to reach state coffers in December instead.
“This timing shift should even out by the end of the calendar year, meaning that there will be minimal impact on overall General Fund collections,” the Department of Revenue said in a release.
Elsewhere, Treasury collections have been up throughout the fiscal year.
“Nontax revenues are $291.2 million, $102.5 million (54.3%) above projections due to stronger than expected treasury (+$118.7 million) and other miscellaneous (+$14.0 million) receipts,” the report said. “Treasury collections for the fiscal year are exceeding estimate(s) due to unusually high General Fund balances and rising interest rates.”
While the office has warned of a possible recession, as The Center Square previously reported, the Pennsylvania economy has continued to add more jobs and keep a low unemployment rate. Nationally, the latest job numbers beat expectations with the U.S. economy adding 263,000 jobs in November.
– – –
Anthony Hennen is a reporter for The Center Square. Previously, he worked for Philadelphia Weekly and the James G. Martin Center for Academic Renewal. He is managing editor of Expatalachians, a journalism project focused on the Appalachian region.
Photo “Pennsylvania Capitol” by pxhere.
