The shortfall in tax revenue during the pandemic was not as bad as New York Governor Andrew had projected. Updated tax receipts show last year was rough, but not terrible.
State tax revenue only fell by $513 million, not the near $7 billion shortfall Cuomo projected last year. The whole was largely buoyed by a federal bailout, higher personal income tax payments and less gloomy business and sales taxes.
In a statement, New York Comptroller Tom DiNapoli said the state’s financial position was “significantly better than anticipated.” But he still signaled caution because federal funds are temporary and the state still faces a long road to recovery.
2020 was one of the most profitable years on Wall Street, which boosted capital gains tax revenue. But in a recent financial analysis, DiNapoli warned that less than half the jobs lost during the pandemic shutdown have yet to be recovered.