Tax Collections Up, But Not Enough To Bridge Pa. Budget Gap
HARRISBURG, Pa. (CBS) – Pennsylvania’s revenue collections to run a bit ahead of projections, but not nearly enough to put a serious dent in a multi-billion dollar deficit projected for the next state budget.
The Pennsylvania Revenue Department says collection of the state’s two biggest taxes, the sales and personal income taxes, were both up slightly in January. For the fiscal year to date, total revenue collections are $264 million, or about two percent, above projections.
while that may that may be a positive sign in regard to the economy, Delaware County Republican William Adolph, chairman of the House Appropriations Committee, says the modest surplus in this year’s budget won’t do much to help staunch the flow of red ink in the next budget.
“You know, that may be $400 million by June 30th… [but] when you’re looking at a $4 billion dollar deficit, those projections aren’t going to fill that hole.”
One reason for the multi-billion dollar structural deficit is the disappearance of federal stimulus funds that have helped plug holes in the last two state budgets.
Reported by Tony Romeo, KYW Newsradio