Treasurer McCord’s Latest Economic Report Assesses PA’s Revenue Collections, Employment Picture

McCord Report compares current revenue collections to past years

Harrisburg – With state tax revenues now totaled for the first seven months of the current fiscal year, Pennsylvania Treasurer Rob McCord says the latest edition of The McCord Report sets out to compare this year’s collections to past years.

“Like many others in Harrisburg and across our state, I watch the state’s monthly revenue numbers with great interest,” said Treasurer McCord. “With collections now totaled for the first seven months of this fiscal year, we have an opportunity to study revenue collections for a significant portion of this year. I believe it is important to provide some historical context, especially with respect to collections and the accuracy of past revenue estimates.”

According to Treasury’s analysis of data from the state Department of Revenue, tax collections for the period from July 1, 2011 through January 31, 2012, are the highest since the 2007-2008 fiscal year.

The report also shows the difference between actual revenue collections and budget estimates for each year. For the current fiscal year, revenues are 3.5% short of estimate – the largest discrepancy since FY 2008-09 when the recession began and state revenues declined sharply. That year, revenue collections were 7.5% below estimate.

The McCord Report further breaks down revenue collections by assessing the three largest sources of tax revenues: personal income tax, sales taxes, and corporate taxes. An analysis of the collections since FY 2000-01 shows Personal Income Tax collections are 0.06% less than FY 2007-08, which was highest during that 12-year span, while this year’s sales tax receipts set a new record for the period. Corporate taxes topped $1.3 billion as of January 31.

Treasurer McCord’s report also takes an in-depth look at Pennsylvania’s employment picture. It details the average duration of unemployment for U.S. workers, the unemployment rate for the state’s workforce based on educational attainment, as well as the industries that have added and lost the most jobs in the past year. It also compares Pennsylvania’s unemployment rate to that of neighboring states and the nation. The Commonwealth’s 7.6% unemployment rate in December was lower than every other state except Maryland and Delaware.

The publication also provides a county-by-county comparison of unemployment rates and number of home foreclosures, and it shines a spotlight on Treasury’s operations, highlighting investment returns and the performance of its Unclaimed Property Program and PA 529 College Savings Program.

The McCord Report offers unbiased information on timely topics affecting the state and its economic health. Earlier issues have looked at public funding for transportation and higher education, the state’s debt level, and the issue of privatizing Pennsylvania’s wine and spirits stores.

To view the most recent edition of The McCord Report, as well as past issues, visit www.patreasury.gov and click on the “McCord Report” graphic.

Media contact: Michael Smith, 717-787-2991 or news@patreasury.gov

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