House Republican Appropria�ons Commi�ee

Economic Brief Rep. Bill Adolph, Republican Chairman May 2010

April Revenue Collections Fall $390 Million Short of Estimate;

Year-to-Date Revenue Hole Grows to $1.11 Billion
General Fund revenues took a serious turn for the worse in April,
as collec�ons dropped more than $390 Million below es�mate. The
recent decline has driven the state’s year-to-date deficit to nearly
$1.11 Billion.

Governor Rendell originally es�mated a $525 Million shor�all for

the year when he introduced his budget proposal in February.

The monthly shor�all was the largest this fiscal year and completes
24 consecu�ve months in which General Fund revenues failed to
meet the Department of Revenue’s projec�ons.
EMPLOYMENT STATISTICS
Rela�ve to April, the shor�all was driven primarily by below- March 2010 Monthly Change
es�mate collec�ons in Corpora�on Taxes and the Personal Income Labor Force 6.458 Million +6,000
Tax (PIT). Total Corpora�on Taxes were down nearly $147.4 Million
and the PIT was short of es�mate by $128.6 Million. Unemployment Rate 9.0% +0.1

Shortages in Non-Tax Revenues can be a�ributed to licenses for Total Employment 5.876 Million +2,000
table games that have not yet been collected. The licenses were
projected to generate $99 Million in April and another $96 Million in 12-Month Growth
May. It is expected that about $165 Million of the total $195 Million Total Employment -80,000
in license fees will be collected by June 1, 2010.
Unemployment Rate +1.5

General Fund Revenue REVENUE COLLECTIONS

April 2010
Year-to-Date Collections: -$1.11 Billion
$4,500,000,000
Corpora�on Taxes Below Es�mate
Estimated Collections
Actual Collections
$4,000,000,000
$436.9 Million -$147.4 Million
$3,500,000,000

Consump�on Taxes Below Es�mate

$3,000,000,000

$2,500,000,000 $827.0 Million -$17.4 Million

$2,000,000,000

All Other Taxes Below Es�mate

$1,500,000,000

$1,000,000,000 $1.49 Billion -$128.9 Million

$500,000,000
Non-Tax Revenue Below Es�mate
$-

$165.9 Million -$96.4 Million

* State General Fund revenues noted above are based on the most recent end-of-month collections.

House Republican Appropriations Committee

(717) 787-1711 www.PABudget.com 245 Main Capitol