NY State Revenue Millions Off July Projections

New York State's revenue projections are even worse than predicted from as recently as six weeks ago. Tax receipts are nearly a half billion dollars off projections made on July 31st, and $5 billion less than in the same period last year, according to State Comptroller Tom DiNapoli. He says declines in personal income tax collections are mostly to blame. Governor Paterson says the state is running out of options to balance it's looming budget deficit.

PATERSON: I would assume that we are going to have some tough sledding for at least a year before we are going to see an upturn in our revenues.

But government spending so far this year is up three percent, due mostly to increases in Medicaid and education spending.