DiNAPOLI RELEASES PRELIMINARY ANALYSIS OF 2009-10 EXECUTIVE BUDGET

Governor Paterson’s Executive Budget proposal uses various cost-saving measures, non-recurring resources and new taxes, fees, charges and assessments to close a $1.7 billion budget deficit in fiscal year 2008-09 and a $13.7 billion gap in 2009-10, according to a report issued today by State Comptroller Thomas P. DiNapoli. DiNapoli’s report found that the governor’s proposal takes positive steps toward aligning spending with available revenues. However, DiNapoli also identified a number of risks to the governor’s proposal that could result in the failure of revenues and savings to materialize, jeopardizing budget balance. DiNapoli also noted the state continues to face long-term structural budget imbalance.

“The governor has struggled to present a balanced budget in the face of an unprecedented financial crisis,” DiNapoli said. “It’s a step in the right direction. But there are risks in the governor’s plan. Many of the proposed revenue raisers and spending reductions may not be enacted or realized. And even though the governor is pushing for more pay-as-you-go capital projects, debt levels are still too high.

“No one said this would be easy. When you’re dealing with a $15 billion budget gap, there’s obviously going to be a lot of pain. But we can’t spend more than we have. If there are proposals to put something back into the budget, then something else has to come out.”

Read the entire report (PDF file) by clicking here: Budget 2009-2010