Report: General Fund revenue puts Pa. in strong financial position

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Revenue Secretary Pat Browne reported that Pennsylvania collected $3.9 billion in General Fund revenue in January, which was $178.2 million, or 4.7%, more than anticipated.

Fiscal year-to-date General Fund collections total $25.5 billion, which is $416.8 million, or 1.7%, above estimate.

“January was another strong month for revenue collections and we’re seeing positive trends in some of our major revenue sources,” Browne said in a statement. “Our goal is typically to be within 2% of our projections, which mean our overall collections are right on target more than halfway through the current fiscal year.”

According to a release, through seven months of FY 2025-26, revenues have outpaced estimates by $416.8 million, putting Pennsylvania in a strong financial position.

“Not only have revenue collections been strong since Governor Shapiro took office, but we’re also seeing the governor’s commitment to sound fiscal management paying off in other ways,” said Secretary of the Budget Zachary Reber, referencing a recent announcement on bond issuance and refinancing saving Pennsylvania taxpayers over $204 million.

“Thanks to the work we have done to create a reliable revenue forecast and budget responsibly, we have more funding available for essential programs that Pennsylvanians rely on to educate our kids, keep our communities safe, and grow our economy.”

January’s sales tax receipts totaled $1.4 billion, which was $5.1 million less than expected. Year-to-date sales tax collections total $9.1 billion, which is $40.2 million, or 0.4%, above expectations.

Personal income tax (PIT) revenue in January was $1.8 billion, $87 million above estimate. Year-to-date PIT collections are $10.3 billion, which is $173.5 million, or 1.7%, above estimate.

January’s corporation tax revenue of $228.7 million was $25.7 million below estimate. This brings year-to-date corporation tax collections to $2.5 billion, which is $31.9 million, or 1.3%, above estimate.

Inheritance tax revenue for January was $183.7 million, $55.2 million above estimate. The year-to-date total is $1.1 billion, which is $64.6 million, or 6.5%, above expectations.

January’s realty transfer tax revenue was $59.4 million, $1.7 million above estimate. The fiscal-year total is $363.9 million, which is $14.2 million, or 4.1%, more than anticipated.

Other General Fund tax revenue, including cigarette, malt beverage, liquor and gaming taxes, totaled $129.7 million for the month, $15.9 million above estimate. The year-to-date total is $975.8 million, which is $44.4 million, or 4.8%, above estimate.

Non-tax revenue totaled $100.3 million for the month, $49.1 million above estimate, bringing the year-to-date total to $1.1 billion, which is $48 million, or 4.4%, above estimate.

In addition to the General Fund collections, the Motor License Fund received $266.2 million for the month, $31.1 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 $1.9 billion, which is $27.9 million, or 1.5%, above estimate.