Monthly Economic Report: City Tax Revenues $32 Million Below Initial Projections

Audit Date: February 1, 2012
Audit Categories
  • Financial
Controller: Alan Butkovitz

Executive Summary

For Immediate Release:
February 1, 2012

Contact: Brian Dries

City Tax Revenues $32 Million Below Initial Projections
City Controller Alan Butkovitz’ economic report compares estimated
& actual tax collections for the first half of the fiscal year

Click here to view monthly economic report

PHILADELPHIA – City Controller Alan Butkovitz today released his December 2011 monthly economic report that identifies a shortfall of $31.6 million in City general fund tax revenues through the first half of FY12.

The lower than expected tax revenue collections were determined by comparing the City’s FY12 initial budget projections to the actual tax collections recorded for the first six months of the fiscal year. In almost every major tax category, the City’s collections are below initial projections. These tax shortfalls include the following:

Wage/Earn/NPT-$10.3 million Business Privilege -$7.7 million Real Estate -$7 million Realty Transfer -$4.9 million Combined Other Taxes -$3.3 million

Sales tax collections totaling $122.9 million through the first six months are the only tax revenue that has exceeded its initial budget projection of $121.3, posting a gain for the City of $1.6 million.

Along with reviewing City tax revenues, the City Controller’s economic report shows that the City’s unemployment rate of 10.1 percent marks the fourth consecutive month of decline. Wholesale and retail employment in the City increased by 700 jobs, from the previous reporting month.

The Controller’s economic report is compiled on a monthly basis and includes an Economic Snapshot and Forecast, as well as real estate information and other local statistics. These reports are circulated every month to assist key decision makers in understanding and anticipating local and national economic trends. The Controller’s economic report is a useful tool for policy makers and analysts in understanding our regional and local economy.