o Estimates for these two sources are directly tied to the economic outlook developed during the fall forecasting process, and specifically, the outlook for jobs and wage income in the Commonwealth.
ADDITIONAL DETAILS
- Individual income tax withholding, 65 percent of total general fund revenues, exceeded the estimate by $33.7 million (0.3 percent variance).
o Annual collections increased 4.2 percent compared with the forecast of a 3.8 percent increase.
- Individual income tax nonwithholding, 14 percent of total revenues and one of the most volatile revenue sources, fell short of the annual estimate by $94.3 million (-3.8 percent variance) in FY12.
o The shortfall was attributable to lower-than-expected individual final payments, which increased by only 5.2 percent compared with expectations of a 14.4 percent increase.
§ These payments are historically tied to non-wage income sources – mainly the financial markets.
o Total nonwithholding collections grew 8.2 percent in fiscal year 2012.
§ Total collections of $2.4 billion are still more than $500 million below fiscal year 2008’s peak.
