February Revenue Collections Send Mixed Signals; Highlight Need for Cautious Optimism, Adolph Says
Recently released state revenue collections for February send mixed signals about the Commonwealth’s economy, according to House Appropriations Committee Chairman Bill Adolph (R-Delaware).
“February revenue collection figures clearly show the fragile nature of Pennsylvania’s economy,” Adolph said. “The revenue trends have not been consistent and should be cause for tempered optimism.”
According to the state Department of Revenue, year-to-date General Fund collections are $243 million, or 1.6 percent, above estimates and total tax collections are 5.7 percent above collections at this point last year. However, revenue collections missed estimates by $20 million in February after two consecutive months of beating expectations.
“A closer look at specific tax collection figures further demonstrates the delicate fiscal situation in Pennsylvania,” said Adolph.
Pennsylvania personal income tax revenues, a figure that normally rises with improving employment figures, fell short of Department of Revenue estimates by 3 percent. Sales tax collections, which have been over estimate for the past 7 months, fell short of estimates by 2 percent. On the positive side, corporate tax collections posted the third straight month of above-estimate collections and exceeded expectations by 17 percent.
“While many economic indicators have been improving in recent months, February revenue collections are a sign that we must exercise caution and move forward in a fiscally responsible way that does not impede economic growth,” Adolph said.
State Representative William Adolph
165th District, Pennsylvania House of Representatives
Contact: Mike Stoll