FOR RELEASE: Immediately
April 18, 2005

Hevesi Releases Year-End Cash Report

State Comptroller Alan G. Hevesi today released the year-end cash report representing final results for the 2004-05 fiscal year.

Hevesi’s report showed that final results were consistent with preliminary figures released on April 5, 2005. At the closeout of the 2004-05 fiscal year, the State’s General Fund with the Personal Income Tax Refund Reserve, is $322.2 million above expectations, primarily due to higher than anticipated business tax collections and lower than expected spending.

The 2004-05 year-end General Fund balance was $1.2 billion. This was comprised of $871.9 million in the Tax Stabilization Reserve Fund, $20.6 million in the Contingency Reserve Fund, and $325.7 million in the Community Projects Fund. The State Financial Plan, updated in February, anticipated a $522 million operating surplus. However, subsequent to the February update, the State made additional payments of $55 million to the State Retirement System to reduce the State’s unpaid balance and $7.9 million that was deposited into the Tax Stabilization Reserve Fund. In addition, the Legislature authorized additional spending in 2004-05 of $200 million for Health Care Reform Act (HCRA) Transfer Account and $190 million for Medicaid.

Had these payments not been made, the State would have ended the fiscal year with an operating surplus of $774.9 million.

General Fund receipts, including transfers, were $105.9 million below the most recent financial plan released in February. General Fund spending, including transfers, was $206.8 above plan.

General Fund Receipts

General Fund receipts, including transfers from other funds, totaled $43.8 billion, up $1.4 billion or 3.4 percent from the 2003-04 total. General Fund tax collections were up $4.5 billion or 16.0 percent due mainly to a law changes made to person income tax and sales tax and stronger growth in the economy.

Net personal income tax receipts were up $2.9 billion or 18.4 percent from last year. Gross receipts, prior to refunds and transfers to dedicated funds, were up $3.6 billion or 12.4%.
Consumer tax receipts increased $752.2 million or 9.4 percent.
Business taxes rose $655.9 million or 19.2 percent.
All other taxes rose $158.1 million or 20.6 percent.
Miscellaneous receipts decreased $3.7 billion or 62.5 percent. This is due primarily to the receipt of proceeds in 2003-04 of $4.2 billion from the sale of future tobacco settlement revenues.
Federal grants decreased $645.2 million or 98.6 percent. This reflects a one-time payment in 2003-04 of fiscal relief of $645 million.
General Fund Expenditures

General Fund spending, including transfers to other funds, totaled $43.6 billion, a $1.6 billion or 3.7 percent increase from 2003-04. The year-to-year increase in spending is understated due to $1.9 billion in spending made in 2003-04 that was deferred from the previous fiscal year. This is offset by the additional spending in 2004-05 from the General Fund that was not included in the financial plan.

Local assistance payments stayed nearly level, rising only $246.4 million or 0.8 percent. This is net of a $976 million increase in social service spending, due to the increased costs of prescription drugs, long-term care, provider reimbursement rates, and the weekly Medicaid payment that was deferred in March 2004 from the 2003-04 fiscal year to the 2004-05 fiscal year.
Departmental Operations spending rose $471.4 million, or 6.7 percent.
General State Charges increased $406.2 million, or 12.5 percent.
Transfers into other funds rose $429.0 or 17.3 percent. This is primarily due to a higher transfer in 2004-05 to the debt service fund.
When compared to the Financial Plan Update issued in February, General Fund disbursements, excluding transfers to other funds, were $216.5 million lower than projected, or 0.5 percent. Including transfers to other funds, General Fund disbursements are $206.8 million higher, or 0.5 percent.

Local assistance payments are $141.1 million below expectations, or 0.5 percent.
Departmental operations are $63.2 million below plan, or 0.8 percent.
General State Charges were $12.2 million below expectations, or 0.3 percent.
Transfers to other funds were $423.3 million above expectations, or 17.0 percent.
All Governmental Receipts and Expenditures
All Governmental Funds receipts, including bond proceeds, were $100.6 billion, an increase of $1.6 billion or 1.6 percent over total receipts in 2003-04. The increase is understated primarily due to non-recurring tobacco bond proceeds and additional federal funds received for fiscal relief, World Trade Center disaster assistance and increased reimbursements resulting from Federal Medical Assistance Percentage (FMAP) rate adjustments received in 2003-04.

Personal income tax receipts were the biggest component of that increase, rising $3.9 billion or 16.4 percent.
Consumer sales taxes rose $1.1 million or 9.4 percent.
Business taxes rose $799.1 million, or 16.0 percent.
Other taxes rose $377.4 million, or 29.5 percent.
Miscellaneous receipts decreased $3.6 billion or 18.3 percent. This is due primarily to the receipt of proceeds in 2003-04 of $4.2 billion from the sale of future tobacco settlement revenues.
Federal grants decreased $1.1 billion, or 3.0 percent. This reflects a one-time payment in 2003-04 of fiscal relief of $645 million, and the expiration of the higher federal match for the Medicaid program.
All Governmental Funds spending in 2004-05 totaled $100.6 billion, $3.3 billion increased or 3.4 percent as compared to 2003-04. This includes a $1 billion payment in December 2004 for a captive insurance plan for emergency response teams and associated claims arising from cleanup efforts at and near the World Trade Center.

Local assistance grants grew $1.6 billion or 2.2 percent.
Departmental operations increased $701.7 million, or 4.7 percent.
General State Charges increased $517.5 million, or 13.5 percent.
Debt service payments increased $437.6 million, or 13.1 percent.
Capital projects spending rose $91.2 million, or 2.4 percent.
more to the report http://www.osc.state.ny.us/press/rel...r05/041805.htm