Commonwealth April Tax Collections Almost 12% Below Estimates

The Pennsylvania Department of Revenue released its April report on receipts. Governor Rendell had been holding out hope that April would fill the large gap that had rolled up so far in this fiscal year. Unfortunately, April collections widened that gap even further.


From the report:

Secretary of Revenue C. Daniel Hassell today reported that Pennsylvania collected $2.9 billion in General Fund revenue in April, which was $390 million, or 11.8 percent, less than anticipated. Fiscal year-to-date General Fund collections total $22.8 billion, which is $1.1 billion, or 4.6 percent, below estimate.

“Revenues continued to deteriorate during the major tax collection month of April. We will have to develop options to address the shortfall to be able to enact a balanced budget for FY2010-11. It will require difficult choices by all involved in state government,” said Budget Secretary Mary Soderberg.

It will be interesting to see if Mt. Lebanon tax receipts mirror this development. Being 12% behind in your biggest month of collection is no small deal.

With an expected $1 billion 2009-2010 budget shortfall, the Governor and the legislature are going to have to make some very difficult decisions.

Much of the rest of the report shows a mixed bag of good news (PIT withholding for April was above estimates) mixed with bad news (corporate tax collections took a big hit).

Thanks for reading.

James