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May 22nd, 2009
By Glenn Blain More bad news out of Albany: The state’s projected budget gap could more than double to nearly $6 billion by the start of next year’s budget. Gov. Paterson said Wednesday he’s bracing for a more than $3 billion shortfall in state revenues this year, which would come on top of the $2.5 billion deficit already projected for the 2010-2011 budget, which begins on April 1. “We are going to have to look at further cuts,” Paterson said. Paterson’s warning came less than two months after lawmakers adopted a $131 billion budget for 2009-2010 that boosted overall spending by about 9% and included more than $4 billion in new taxes and fees. “New York doesn’t have a revenue problem, it has a spending problem,” said Senate Minority Leader Dean Skelos (R-Long Island). Paterson said his prediction was based on what happened to the state in the 2008-2009 fiscal year, when the state lost $3 billion in revenues. “I guess I’m the eternal pessimist,” Paterson said. Paterson’s pessimism was not shared by Assembly Speaker Sheldon Silver (D-Manhattan) and Senate Majority Leader Malcolm Smith (D-Queens). Both said it was too early to predict the state’s financial fate. “There are hopeful signs of improvement,” Silver said, referring to the economy. Even Paterson’s budget office said the latest estimates don’t back up the dire predictions. “What we see is that we are essentially in line with the financial plan,” said Budget Division spokesman Jeffrey Gordon. Gordon said Paterson was simply “voicing his concerns about the uncertainties in the economic climate.” State Controller Thomas DiNapoli warned this week that the state’s budget year got off to a “poor start,” collecting only $4.8 billion in revenues in April, about $239.1 million below projections. Read more: “State’s budget gap could hit $6 billion by next year, says Governor Paterson” – http://www.nydailynews.com/ny_local/2009/05/20/2009-05-20_states_budget_gap_could_hit_6_billion_by_next_year_says_governor_paterson.html#ixzz0GFEPQ5Nf&A |
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