Government Affairs Albany Update
July 28, 2009

End of Session Update

The Business Council's summary of post-budget legislative activity is available here. It includes summaries of, and legislative action to date on, a range of key business legislation. Please feel free to contact the indicated Business Council staff member with any questions or comments on this legislation.

Expanded Proposal on NYS Corporate Tax Reform

The NYS Department of Taxation and Finance has issued an expanded outline of potential Article 9-A and 32 integration/reform legislation. An initial outline of their proposal was presented at our May Conference on State Taxation. The Department's intent is to have a final proposal for inclusion in Governor Paterson's Executive Budget proposal for Fiscal 2011, to be issued in mid January 2010. 

Key components of this draft include:

This proposal will have major impacts on many Business Council members, and we would appreciate hearing from you regarding the impact on your company.

Contact: ken.pokalsky@bcnys.org

First Quarter Cash Results

State Comptroller has released first quarter cash flow results for the state, available on line here. Within the next several days, the Division of Budget will be releasing their report on first quarter budget performance and updated projections for the remainder of Fiscal 2010.

While the Comptroller said “Results for June were not as bad as anticipated,” he also cautioned that overall revenues are still lower than projections, and that “the state needs to watch spending closely.”

For the first quarter, General Fund receipts were $305 million, or 2.3%, below projections. Overall state revenues were $375 million from projections and were $4.1 billion, or 24.5%, below the first quarter of Fiscal 2009.

Personal income tax revenues were down $3.4 billion from last year's level for the first quarter; 92 percent of that downturn was due to a drop in estimated payments by upper income taxpayers.

Contact: ken.pokalsky@bcnys.org

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