New York state’s tax revenue plummeted 68.4% in April, as the coronavirus lockdowns and the extension of tax return filings to July 15 took a toll on state coffers.
The Empire State collected $3.7 billion, or $7.9 billion less than the previous April. Personal income-tax revenue fell more than $7 billion from last April, a drop that was primarily due to the delayed tax filing deadline.
“New York is facing economic devastation not seen since the Great Depression,” New York Comptroller
Government-ordered lockdowns to prevent the spread of the virus have cratered the U.S. economy, decimating state tax revenue. April sales and income tax receipts in 24 states declined sharply,
The evaporation of revenue, combined with increased spending for health care and unemployment benefits, is upending state budgets. California Governor
Lawmakers gave Governor
New York’s budget gap could narrow when it gets more guidance from the federal government on how it can spend the $5.1 billion allocated to the state under the CARES Act. The current budget only allocates $133 million of that money to pay interest on planned cash flow borrowing.
The U.S. Treasury released updated information on May 4 regarding use of the relief money that may allow the state to use most of its $5.1 billion allotment, although specific estimates aren’t possible because the Treasury guidance was limited, DiNapoli said in a report Thursday on the state’s financial plan.
“The last go-around from Treasury indicated more flexibility,” on eligible spending, DiNapoli said in a phone interview Thursday. “It’s fair to say there will be significantly more than 133 million.”
(Adds federal relief allotment in 7th paragraph)
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