The general fund collects over 86% of the total tax revenues and is the primary funding source for most commonwealth agencies.
General fund tax revenues
The largest significant source of tax revenues net of refunds is personal income tax. Reported personal income tax accounts for 38% of all tax revenues reported. Sales tax, which represents a tax on various items purchased by consumers, is the second largest category. Reported sales tax accounts for 33% of all tax revenues reported. Corporate taxes, which represent different taxes on various corporations, are the third largest category. Reported corporate tax accounts for 17% of all tax revenues reported. These three categories represent Pennsylvania largest sources revenues.
The general fund reported total expenditure of $47,866 and total other financing uses of $1,049 during the fiscal year ended June 30,2010.exenditure for health and human services accounting for over 56% of all general fund expenditures. The second largest category, public education accounts for nearly 28% of the reported expenditure.
Profile of New York State
New York was one of the original 13 states ratifying the U.S. constitution and entering the union on July 26, 1788.the state has a land area of 49,576 square miles and the largest park system. New York's government comprises of three branches legislative, executive and judicial. The executive branch includes the department of audit and control and the department of law headed by the governor, controller and attorney general. The chief justice who heads the court of appeal heads the judicial branch.
Economic condition and outlook
Throughout the year 2009, the national economy remained in the hands of the most serious recession since the great depression. The recession, which had its roots in a severe downturn in the housing market that led into a worldwide financial crisis, resulted in large job losses, which was a significant reduction in economic output and largely reduced consumer spending and confidence. In some respects, the recession was not severe in New York State as it was elsewhere in the nation. Economic output as measured by GDP growth was less affected in New York than in the nation. Job losses started later in the state where the decline was less than it was in other nations. Wages and incomes in New York were however affected more by the recession than the rest of the nation, reflecting the importance of financial sector to New York's economy and tax revenues.
The reporting entity and its services
The funds and entities included in this comprehensive annual financial report are those which the state is accountable, based on the criteria for defining financial reporting entity prescribed by the GASB, the criteria include: fiscal dependency, legal standing and financial accountability. The state provides a range of government services in areas such as social services, criminal justice, education, health and environment, housing, mental hygiene and transportation just to name a few and also administers the new York state and local retirement systems.
Management discussion and analysis
Management discussion and analysis provides an analysis and overview of the financial activities of the state of New York for the fiscal year ended march 31, 2010.it is meant to serve as an introduction to the states basic financial statements, which have the following components, government wide financial statements, fund financial statements and note to the financial statements.
Reporting the state as a whole
The statement of net assets and the statement of activities
The annual report contains a series of financial statements and supplementary information. The statement of net assets and the statement of activities provide information about the activities of the state as a whole and present a longer-term view of the state's finances. For government activities, these statements show how services were financed in the short-term as well as how much may remain for future activities. Fund financial statements also report the states operations in more detail than the government wide statements by providing information about state's most significant funds.
The statements of net assets and the statement of activities report information about the state as a whole and about its activities. These statements include all assets and liabilities using the accruals basis of accounting that are similar to the accounting method used by most private sector companies. All the current year's revenues and expenses are taken into consideration regardless of which cash was used or received.
These two statements report the states net assets and changes to them. You can think of the states net assets as the difference between assets and liabilities as one way to measure a state's financial health. Over time, increases or decrease in the states net assets are indicators of whether its financial health is improving or deteriorating. One may need to consider other financial factors such as changes in the states tax structure, employment, population and the condition of the states bridges, roads and buildings in order to assess the overall health of the state.
When it comes to the statements of net assets and the statement of activities operations of the state are divided into three kinds of activities:
Governmental activities-most of the state's basic services are reported here, including public health, education, public safety, public welfare, support and regulation of business, environmental and recreation, transportation, general government, consumption and use taxes, personal income taxes, transfer of lottery revenues and bond proceeds.
Business type activities -- the state charges a fee to customers to help cover all or part of the cost of certain services it provides.
Reporting the state's most significant funds
Fund financial statements
Financial statements prepared at the fund level provide additional detail about the state's financial position and activities. Information presented in the fund financial statements differ from the information presented in the government wide statements because the perspective and basis of accounting used to prepare the government wide statements. The funds presented in the fund financial statements are categorized as either major or non-major funds as required by generally accepted accounting principles (GAAP).
Overall financial position and results of operations
Government entities are required by GAAP to report on their net assets conditions. The statement of net assets presents the value of all of New York states assets and liabilities with the difference between the two reported as net assets.
The state reported net assets of $28.1 billion comprised of $64.3billion in capital assets net of related debt and $3.8 billion in restricted net assets offset by an unrestricted net asset deficit of $39.9 billion.net assets reported for government activities decreased by $2.9 billion from 2009 decreasing from $30.9 billion to $28 billion. Unrestricted net assets for government activities the part of net assets that can be used to finance had a deficit of $38.5 billion at march 31, 2010.
The state's total revenues for government activities of $125.9 were less than its total expenses of $126.7 billion by $760million. However, the amount he stat taxpayers ultimately financed for activities through state taxes and other state revenues was $63.1 billion including education aid and transfers from the state lottery of $2.7 billion grants and contributions of $51.3 billion and revenues derived by those who directly benefited from the programs of $11.6 billion.
Business type activities
The cost of all business activities in the year was $27.8 billion and increase of $7 billion as compared to $20.8 billion in 2009. The increase in expenses for business type activities was caused primarily by increases in unemployment benefit payments from the unemployment insurance fund.
The states funds
The state uses fund accounting to ensure and demonstrate compliance with legal and finance related requirements. As the state completed the year, its governmental funds reported a combined fund balance of $3.9 billion. In the year 2010 total change in fund balance is a deficit of $594 million in the state's general fund, which resulted from expenditures exceeding revenues by $9.3 billion, which was offset by transfers to the general fund. Even though the general fund reported an increase in personal income taxes and miscellaneous revenues, the general fund also reported a $115 million decrease in consumption and uses taxes, a $180 million decrease in business tax revenue and a $215 million decrease in other taxes. The increase in personal income tax was due to the removal of the middle class School Tax Relief Rebate program and an increase in withholding and estimated tax payments from the same period in the year 2009.Miscellaneous revenues increased primarily due to the temporary increase in public utility assessments and increased collections of abandoned property. The decrease in consumption and use taxes is primarily due to a decrease in sales tax collections from household spending. The decline in business taxes is due to slowdown in corporate profitability and a decrease in audit and compliant receipts. The increase in general fund revenues was combined with…