Pa. closes 2022 with strong December revenue, budget surplus

Pennsylvania collected $4 billion in General Fund Revenue in December 2022, which was $319.9 million more than anticipated, Gov. Tom Wolf and the Department of Revenue announced Tuesday. 

Collections for the fiscal year-to-date General Fund total $19.7 billion, $503.1 million above the estimate. 

Wolf said in a statement that Pennsylvania is in a strong fiscal position heading into 2023. “Year to date, we are 2.6 percent above our estimated revenue collections, which means we have $503.1 million in the bank above and beyond what we expected. That’s money that can be used to better support the people of Pennsylvania in the coming year, and I look forward to seeing what the new administration and the General Assembly will accomplish on behalf of Pennsylvanians.” 

Pennsylvania was operating with a $2-3 billion budget deficit when Wolf took office eight years ago, and the Rainy Day Fund was just $231,800. Pennsylvania ended the most recent fiscal year with $5.537 billion in the General Fund, and an investment of more than $5 billion in the Rainy Day Fund. 

Revenue Secretary Dan Hassell noted it was only a couple years ago that Pennsylvania was dealing with a $3.2 billion shortfall at the end of the 2019-20 fiscal year. “Fortunately, we are facing a much different situation today — and that is very much a testament to the strong fiscal management of Gov. Wolf. Pennsylvanians should be encouraged that we are on such solid financial footing as the Governor closes out his term.” 

Wolf said the goal of his administration has been to build a strong foundation for Pennsylvania so that government can invest in the things that improves the lives of Pennsylvanians, including an historic $3.7 billion investment in education. 

“The strong fiscal foundation that my administration has built will empower the next administration and the General Assembly to continue making life-changing investments in the people of Pennsylvania in the years to come.” 

Most of the surplus in December is attributable to personal income tax revenue that was deposited on the first day of the month, rather than on the last day of November, as initially expected. Sales tax receipts totaled $1.2 billion for December, which was $2.3 million below estimate. Year-to-date sales tax collections total $7.1 billion, $134.8 million more than anticipated. 

Personal income tax (PIT) revenue in December was $1.4 billion, $204.9 million above estimate. This brings year-to-date PIT collections to $7.5 billion, which is $27.1 million above estimate. 

December corporation tax revenue of $1 billion was $116.3 million above estimate. Year-to-date corporation tax collections total $2.7 billion, $328.7 million above estimate. 

Inheritance tax revenue for the month was $138.0 million, $6.1 million above estimate, bringing the year-to-date total to $725.7 million, $16.3 million below estimate. Realty transfer tax revenue was $55.8 million for December, $23.3 million below estimate, bringing the fiscal-year total to $351.9 million, $26.7 million less than anticipated. 

Other General Fund tax revenue, including cigarette, malt beverage, liquor, and gaming taxes, totaled $174.2 million for the month, $5.1 million below estimate and bringing the year-to-date total to $939.6 million, $32.5 million below estimate. Non-tax revenue totaled $55.5 million for the month, $23.3 million above estimate, bringing the year-to-date total to $346.7 million, $88 million, above estimate. 

In addition to the General Fund collections, the Motor License Fund received $203.0 million for the month, $8.2 million above estimate. Fiscal year-to-date collections for the fund – which include gas and diesel taxes, as well as other license, fine and fee revenues – total $1.4 billion, $25 million above estimate.