State’s Independent Fiscal Office Reports PA Revenues are $866 Million Ahead of Estimates
May 20, 2019
Pennsylvania’s Independent Fiscal Office (IFO) has released its May 2019 Initial Revenue Estimate, which shows greater than expected increases in revenues. This news provides some breathing room for state lawmakers as they finalize the state budget.
Based on actual revenue collections through April 2019, and projections for the remainder of the fiscal year, the revised estimate for Fiscal Year (FY) 2018–19 increases revenues by $866 million from the IFO’s official revenue estimate.
As budget negotiations continue, lawmakers will have a larger pot of funds to consider as they refine priorities. The increase is attributed to changes in four revenue sources:
- Corporate net income tax (CNIT) collections are projected to grow at a rate of 17.9 percent for FY 2018–19, which will exceed the IFO’s official estimate by $318 million
- Non-motor vehicle sales and uses tax collections are expected to exceed the IFO’s official estimate for FY 2018–19 by $245 million
- The revised estimate for non-withheld personal income tax collections is $121 million higher than the IFO’s official estimate for FY 2018–19
- Licenses and fees revenue is projected to exceed the IFO’s official estimate by $88 million, primarily the result of collecting $78 million more than anticipated in fees related to gaming expansion
Overall, the IFO report stated that Pennsylvania’s economy is performing as expected.
HAP understands and appreciates the significance of fiscal responsibility in planning for future economic hard times. The hospital community remains hopeful that the news of additional revenues ensures that commitments made to existing programs under the Tobacco Settlement Fund can continue.
Please direct any questions about Tobacco Settlement Funds to Stephanie Watkins, vice president, state legislative advocacy or Warren Kampf, senior vice president, advocacy and external affairs.