PA in strong financial position as revenue collections nearly $1B above estimate

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Pennsylvania’s revenue collections are nearly $1 billion above original estimate, putting the commonwealth in a strong financial position.

This fiscal year, Pennsylvania has collected nearly $928 million more than anticipated, Revenue Secretary Pat Browne reported. Fiscal year-to-date General Fund collections total $45 billion, which is $927.8 million, or 2.1%, above expectations.

“We are nearly $928 million above our overall projections for the current fiscal year, despite May collections coming in slightly under estimate,” Browne said in a statement. “With one month to go in the fiscal year, we are assured of finishing the year with a sizable surplus. That puts us in a strong financial position to make the investments that Governor Shapiro is calling for in his budget proposal.”

Pennsylvania collected $3.3 billion in General Fund revenue in May, which was $65 million, or 1.9%, less than expected.

“Our revenue collections through 11 months of this fiscal year are very strong, in large part because of Governor Shapiro’s leadership and the commitment he’s made to investing in Pennsylvania’s economic growth,” said Secretary of the Budget Zachary Reber. “With the commonwealth on stable financial footing, now is the time to make the investments in the governor’s proposed budget that will continue to educate our kids, keep our communities safe, and grow our economy. We have seen the investments made to date provide beneficial returns and continuing to make progress will only lead to more economic growth.”

May’s sales tax receipts totaled $1.3 billion, $36.7 million more than anticipated. Year-to-date sales tax collections total $14.1 billion, which is $119.1 million, or 0.9%, over expectations.

Personal income tax (PIT) revenue in May was $1.2 billion, $15.5 million less than expected. Year-to-date PIT collections are $18.3 billion, which is $395.5 million, or 2.2%, more than anticipated.

May’s corporation tax revenue of $251.3 million was $106 million below estimate. Year-to-date corporation tax collections total $7 billion, which is $107.8 million, or 1.6%, above expectations.

Inheritance tax revenue for May was $152.3 million, $1.2 million more than anticipated. The year-to-date total of $1.7 billion is $89.2 million, or 5.6%, above expectations.

The month’s realty transfer tax revenue was $59.8 million, $1.2 million less than expected. The fiscal-year total of $589.6 million is $19.2 million, or 3.4%, more than expected.

May’s other General Fund tax revenue, including cigarette, malt beverage, liquor and gaming taxes, totaled $188.5 million, $17.8 million above expectations. The year-to-date total of $1.3 billion is $65.4 million, or 5.1%, more than anticipated.

Non-tax revenue totaled $62.9 million for May is $2 million over estimate. This brings the year-to-date total to $1.9 billion, which is $131.5 million, or 7.4%, above expectations.

The Motor License Fund received $289 million for the month, which is $7.9 million above estimate. Fiscal year-to-date collections for the fund, including the commonly known gas and diesel taxes, as well as other license, fine and fee revenues, total $2.9 billion, which is $78.5 million, or 2.7%, more than anticipated.