Pa. Revenue Collections Off To A Slow Start In New Fiscal Year

HARRISBURG, Pa. (CBS) - After finishing the last fiscal year with revenues above projections, Pennsylvania is headed in the other direction in the first few months of the new fiscal year.

Pennsylvania actually collected hundreds of millions of dollars more than expected in the fiscal year that ended June 30th, even though that surplus was more than offset by the loss of federal stimulus funds.

And now the lagging economy has resulted in collections that are $215-million, or about 3.5%, below projections for the first three months of the new fiscal year.

Elizabeth Brassell, a spokeswoman for the state Revenue Department, says percentage-wise, business taxes are off the most among the state's three biggest levies so far this fiscal year.

"Corporation taxes were down about 12.9% for the year. But, we also did see lower than expected returns in [the] personal income tax and sales tax as well."

For the month of September alone, revenues were more than 6% below projections.

Reported by Harrisburg Bureau Chief Tony Romeo, KYW Newsradio 1060