Bad budget news continues
Friday, November 18, 2011 - 09:00 AM
First there was the Assembly's "quick start" report released yesterday. There's a bit of uncertainty in the budget gap they see next year--whether it's a full $1.8 billion or if that figure takes into account the shortfall in this year's budget as well--but the message is the same.
[T]he [midyear report] notes that there are serious risks to the economic outlook of the nation and New York State. Problems that were central to the recent recession continue, particularly weaknesses in both the labor market and the housing market. Furthermore, a highly volatile stock market and the European debt crisis have created considerable uncertainty in the financial markets.
Today, State Comptroller Thoma DiNapoli's office heaped on the pile of budget downers with a release saying the October tax revenues were below expectations by $584 million.
“New York’s financial results over the past several months support the recent downward revisions to the State’s Financial Plan and reinforce recent Quick Start projections,” DiNapoli said in a statement. “It is more important than ever to confront our budgetary problems with responsible, recurring actions to ensure a fair and balanced budget that improves the health of our state’s economy.”
The Governor's office has said the budget gap next year could be as high as $3.5 billion.