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.
- 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.