State tax collections came in lower than projected last month as the economy continues to sputter, according to a report released Friday by Comptroller Thomas DiNapoli.
The state took in $28.71 billion of taxes in the first three quarters of the fiscal year that began April 1, $230.7 million less than the state projected in its midyear update in November.
Revenue is still stronger than it was in fiscal 2011 -- it's grown by 8.6 percent -- but strong personal income tax collections at the beginning of the year have since declined.
"It's important to recognize that even though tax receipts are up from the previous year, economic growth remains sluggish and the economy fragile," DiNapoli said in a news release.
Personal income tax collections totaled $17.3 billion in the first three quarters, $219.3 million less than during the same period last year. Business tax collections, however, are up $293.3 million to $3.7 billion, compared with the previous year to date.
The report comes as Gov. Andrew M. Cuomo's staff prepares his executive budget proposal to be presented on Tuesday.
The most recent estimates put the budget gap at $2 billion after lawmakers last month revised the tax code to raise taxes on high earners and took other measures valued at a net $1.5 billion. The deficit had grown to a projected $3.5 billion.
Closing the gap doesn't present as big a challenge as it did last year when the state cut spending to close a $10 billion deficit. In November, state Budget Director Robert Megna ordered agency heads to identify spending cuts of 2.5 percent next year.
Division of Budget spokesman Morris Peters declined to comment on DiNapoli's report but said the state will release an updated financial plan when it presents the executive budget.