Newspaper article Pittsburgh Post-Gazette (Pittsburgh, PA)

Corporate Tax Income Surge May Help State's Outlook for Its Budget

Newspaper article Pittsburgh Post-Gazette (Pittsburgh, PA)

Corporate Tax Income Surge May Help State's Outlook for Its Budget

Article excerpt

HARRISBURG - The state's budget picture could be less bleak - at least in the short-term - according to one independent analysis.

Facing a budget shortfall most recently estimated at about $1.5 billion, the commonwealth's Independent Fiscal Office says the state has more revenue so far this year than expected, and has revised its revenue forecast to reflect an additional $594 million.

The analysis by the Independent Fiscal Office found unexpected bumps in corporate net income tax payments worth $334 million and an extra $220 million in unclaimed property revenue.

It's unclear what's driving the increase in corporate payments, said IFO executive director Matthew Knittel, and thus the office is not assuming the trend will continue to the next fiscal year.

"The implications going forward for the budget are unclear," Mr. Knittel said.

The bump in funds from unclaimed property is due to a policy change that took effect with the budget that lawmakers passed last year. …

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