Summary
The Second Quarter FY10 QCMR, submitted in February 2010, highlights a $48.6 million projected deficit, compared to a $3.0 million surplus projected in the Five-Year Plan. Wage Tax collections declined by 4.6% in Q1 and 1.1% in Q2, while Sales Tax collections dropped 8.6%. Revenue projections improved for Business Privilege and Real Estate Transfer Taxes, but Sales Tax was revised downward by $8.0 million. On the expenditure side, unexpected snow removal costs added $11.5 million, while legal settlements raised indemnities by $10 million. The First Judicial District required an additional $7.6 million, mainly for court-appointed counsel fees. Despite cost savings in the Prison System ($9 million) and Debt Service ($9.3 million), the overall financial outlook remained negative.