Pennsylvania House of Representatives
Economic Brief
State Representative George Dunbar
April 2017
Pennsylvania Brings in $3.43 Billion in Revenue Collections
April Revenue Collections
General Fund revenue collections for the month
of April were $3.43 billion, which was $537 million less
than expected.
Collections of $239 million for corporation taxes
came in below Department of Revenue projections by
$227 million. Sales tax collections of $831 million were
lower than expected, coming in $58 million below the
official estimate. The Personal Income Taxes collected
were $1.85 billion, which was below estimate by $181
million.
Estimate
Actual
Total General Fund
Total General Fund
$3.97 Billion
$3.43 Billion
Corporation Taxes
Corporation Taxes
$466 Million
$239 Million
Sales Taxes
Sales Taxes
$889 Million
$831 Million
Personal Income Taxes
Personal Income Taxes
$2.03 Billion
$1.85 Billion
All Other Taxes
All Other Taxes
$296 Million
$298 Million
Non-Tax Revenue
Non-Tax Revenue
$287 Million
$215 Million
For the 2016-17 Fiscal Year, General Fund
collections of $25.82 billion are below the official
estimate by $1.2 billion.
Difference From the Official General Fund Revenue Estimate
(millions)
$200.0
$36.1
$0.0
($73.4) ($73.6)
($144.9)
($200.0)
($218.5)
($79.5)
($49.8)
($32.9)
($105.2)
($182.4)
($229.6)
($261.8)
($400.0)
($367.0)
($416.8)
($449.7)
($537.1)
($600.0)
($679.3)
($800.0)
Monthly
Year-to-Date
($1,000.0)
($1,200.0)
($1,216.4)
($1,400.0)
Jul-16
Harrisburg Office
(717) 260-6132
Aug-16
Sep-16
Oct-16
Nov-16
Dec-16
Jan-17
House Republican Appropriations Committee
www.repdunbar.com
Page 1
Feb-17
Mar-17
Apr-17
District Office
(724) 744-0305
Pennsylvania
House
of Representatives
House
Republican
Appropriations
Committee
Economic Brief
State Representative George Dunbar
Chairman’s Budget News
April 2017
One of the primary drivers of the fiscal challenge that Pennsylvania faces is lower-than-expected revenue collections.
To date, General Fund revenue collections are $1.2 billion below the year-to-date estimate. To put that in perspective
our revenue collections are actually 0.3% or $73 million lower than this time last year. This negative growth in our
revenue collections will force the legislature and the governor to make tough choices, which is why the House passed
HB 218 which has a lower spend number than the current fiscal year.
Corporate tax collections are the biggest weak spot in our overall revenue collections. Year-to-date we are $577 million below the official estimate. Compared to the prior year, corporate tax collections have declined by 12.4%. We
have also seen slow growth in our personal income tax and sales tax collections. Our personal income tax collections
have only grown 0.6% as compared to the prior year. Sales tax collections have grown 1.3% as compared to the prior
year, but are 2.3% below the official estimate.
There are many factors at play with the lower-than-expected revenue collections. The GDP for the first quarter of
2017 grew only 0.7% which is the lowest growth rate in three years. The U.S. has seen negative corporate profits for
2015 and 2016 which is the first time this has occurred during a non-recession year in decades. Many corporations
and some individuals may be waiting to see what tax policy changes are enacted on the federal level. The price of
natural gas is at a very low level which impacts not only natural gas companies in PA but royalty payment recipients
as well. From 2015 to 2016 Pennsylvania saw a small drop in population which is the first time this has occurred in
31 years. This combined with a growing retiree population could be affecting income collections. The U.S. Bureau of
Economics has reported that consumer spending for February and March has been essentially flat.
During these challenging times Harrisburg must have the courage to rebalance the Commonwealth’s expenditures
and revenues. As we work to complete the 2017-18 General Fund budget enactment process we will continue to
monitor these changes in revenue growth.
PA EMPLOYMENT STATISTICS
12-Month Unemployment Rates
6.0
Monthly Change
March 2017
6.44 Million
Labor Force
+7,000
Unemployment Rate 4.8%
5.5
Total Employment
12-Month Change
5.0
-0.2%
6.13 Million
Total Employment
+41,000
Unemployment Rate
-0.6%
+17,000
Surrounding States Unemployment Rates
4.5
4.0
Mar-16 Apr-16 May-16 Jun-16
Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17
PA Unemployment Rate
Harrisburg Office
(717) 260-6132
DE
4.5%
NY
4.3%
MD
4.3%
OH
5.1%
NJ
4.2%
WV
4.9%
National Unemployment Rate
House Republican Appropriations Committee
www.repdunbar.com
Page 2
District Office
(724) 744-0305