Third month of red ink for Rendell budget

It's not looking any better for Gov. Ed Rendell's deficit budget for the 2008-09 fiscal year.

For the third month in a row, the state took in less than it spent.

The three-month deficit in Rendell's $28.3 billion budget now totals $281.4 million.

The Pennsylvania Department of Revenue today released its monthly revenue figures, showing Pennsylvania collected $2.3 billion in General Fund revenue in September, $163.8 million, or 6.5 percent, less than anticipated.

Fiscal year-to-date General Fund collections total $5.8 billion, which is $281.4 million, or 4.7 percent, below estimate, Revenue Secretary Tom Wolf said in a written statement.

"September is the first significant collections month of the fiscal year, as quarterly corporation tax and personal income tax estimated payments were due this month," Wolf said. "Pennsylvania has weathered the economic storm better than other states, but it's clear that the uncertainties in the national economy are affecting our tax collections in Pennsylvania."

Earlier this month, Gov. Rendell ordered a hiring freeze and a ban on out-of-state travel and instructed most state agencies to reduce spending by 4.25 percent to save about $200 million.

But those savings won't even cover the $281.4 million running deficit and there are still nine more months to go in the fiscal year. Republican lawmakers want to re-open the $28.3 billion budget to find more places to cut.

Can somebody bail out Pennsylvania?

Here are the revenue totals released today by the state:

Sales tax receipts totaled $688.3 million for September, $33.3 million below estimate. Sales tax collections year-to-date total $2.2 billion, which is $61.1 million, or 2.7 percent, less than anticipated.

Personal income tax (PIT) revenue in September was $954 million, $50.9 million below estimate. This brings year-to-date PIT collections to $2.4 billion, which is $58.2 million, or 2.4 percent, below estimate.

September corporation tax revenue of $502.1 million was $42.7 million below estimate. Year-to-date corporation tax collections total $629.6 million, which is $61.8 million, or 8.9 percent, below estimate.

Other General Fund revenue figures for the month included $62.6 million in inheritance tax, $3.9 million below estimate, bringing the year-to-date total to $203.6 million, which is $13.5 million below estimate.

Realty transfer tax was $31.5 million for September, bringing the total to $103.7 million for the year, which is $15.4 million less than anticipated.

Other General Fund revenue including the cigarette, malt beverage and liquor tax totaled $105.2 million for the month, $24.3 million below estimate, bringing the year-to-date total to $274.3 million, which is $71.3 million below estimate.

In addition to the General Fund collections, the Motor License Fund received $182.1 million for the month, $14 million below estimate. Fiscal year-to-date collections for the fund total $616.4 million, which is $50.1 million, or 7.5 percent, below estimate.

The Gaming Fund received $47.7 million in unrestricted revenues for September. Fiscal year-to-date collections for the fund total $150.3 million. Gaming Fund receipts include taxes, fees and interest. Of the total for the month, $47.2 million was collected in state taxes for property tax relief, bringing the year-to-date total to $149 million.

Other gaming-related revenues collected for September included $5.6 million for the Local Share Assessment, for a total of $13.4 million for the year; $6.9 million for the Economic Development and Tourism Fund, for a year-to-date total of $21.9 million; and $16.7 million for the Race Horse Development Fund, bringing the total for the year to $52.6 million.