Pa. state budget shortfall nearing $500M

HARRISBURG, Pa. (AP) — Halfway through Pennsylvania’s fiscal year, the state government revenue shortfall is already almost a half-billion dollars.

Figures released today by the Corbett administration show tax collections lagging projections by 4 percent, or $487 million.

Among the major tax lines, collections of corporate taxes were especially weak. Payments for the six months ending in June totaled $1.2 billion. That’s $259 million, or nearly 18 percent, less than anticipated.

Collections of sales and personal income taxes also fell short of projections over that period — by 3.5 percent for the income tax and 0.5 percent for the sales tax.

Gov. Tom Corbett has imposed a pay freeze for top executive branch officials and more than 12,000 nonunion managers. Corbett spokesman Kevin Harley says other austerity initiatives are likely, but declined to elaborate.