Pa. Tax Revenue Higher, Showing Signs Of Rebounding Economy
HARRISBURG, Pa. (CBS) - There was a major dollop of good news regarding Pennsylvania's budget woes: April revenue collections were well above projections.
Revenue collections in April were 9% above what was anticipated. In addition to being a sign of a rebounding economy, it means that for the fiscal year to date, revenues are half a billion dollars above estimates. April is the biggest month for collections and May is almost as big, meaning that surplus still has room to grow.
But, with a multi-billion dollar deficit, Erik Arneson, spokesman for Chester Republican Dominic Pileggi, the Senate majority leader, cautions against too much optimism, "Even if May is equally strong, there will be programs at the end of this process that are eliminated, programs that are significantly cut."
Meanwhile, adding fuel to the debate over taxing natural gas extraction, the state revenue secretary says one reason for the growing surplus is that corporate taxes already being paid by drilling companies were underestimated.
Reported by Harrisburg Bureau Chief Tony Romeo, KYW Newsradio 1060
