Cash collections nearly 4% ahead of fiscal 2015 pace through November

CASH COLLECTIONS for the state showed significant growth in personal income tax as well as sales and use taxes through November for fiscal 2016, more than offsetting declines in departmental receipts and lottery transfer payments. / COURTESY R.I. DEPARTMENT OF REVENUE
CASH COLLECTIONS for the state showed significant growth in personal income tax as well as sales and use taxes through November for fiscal 2016, more than offsetting declines in departmental receipts and lottery transfer payments. / COURTESY R.I. DEPARTMENT OF REVENUE

PROVIDENCE – State general revenue cash collections for fiscal 2016 increased nearly 4 percent through November to $1.4 billion, despite an initial plunge in lottery proceeds associated with the beginning of casino gambling in Massachusetts.
The state Department of Revenue reported collection of lottery proceeds fell $6.4 million in the fiscal year through Nov. 30 to $121.2 million, compared with the same period in 2015, according to figures released Wednesday. The 5 percent decline in lottery revenue for the 2016 fiscal year-to-date was anticipated, according to a news release summary.
The impact of Plainridge Park Casino, which opened June 24 in southeastern Massachusetts, was felt most keenly in the initial months of the fiscal 2016 collections for Rhode Island. By November, however, cash collections in the lottery transfer category grew 1.3 percent, an increase of $400,569 for the month compared with November 2015.
The shortfall in lottery proceeds was more than made up in other revenue categories. For instance, personal income tax collections increased 8 percent to $492.3 million, sales and use tax collections increased 3.4 percent to $431.4 million, with non-specified general revenue increasing 10.9 percent to $161.5 million. In addition to the drop in lottery transfer payments, departmental receipts fell 3.4 percent to $209 million.
Overall, cash collections through November came in $52.6 million more than in the same fiscal 2015 period, according to Acting Director of Revenue Marilyn S. McConaghy.
“The 3.9 percent rate of growth is in spite of the fact that departmental receipts, cash collections and lottery transfer cash collections are down a combined $13.7 million on a year-to-date basis in fiscal year 2016,” she said, in the release.
The decline in departmental receipts was attributed to a change in how deposited checks are accounted for within the state budget.
The cash collection report differs from the revenue report issued by the state Monday, which compared accrued revenue to the budgeted amounts. In that report, Rhode Island total general revenue came in at $1.3 billion for the fiscal year through November, 2 percent above expectations.
The full cash collections report can be found on the Department of Revenue’s website at dor.ri.gov under the State Reports tab.

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