DiNapoli: Things could get worse
-
- January
- 14
 The potential state deficit may be worse that the $4.3 billion currently being projected by the Spitzer administration, the state’s chief fiscal officer said today.
    ”$4.3 billion is a conservative estimate,’’ Comptroller Thomas DiNapoli said in an interview on AM-1300 in Albany today. “The roller coaster of Wall Street is moving in the wrong direction.’’
  GOv. Eliot Spitzer is due to present his budget plan for the fiscal year that starts April 1 to the Legislature a week from Tuesday. His Budget Division placed the gap at $4.3 billion last fall, as tax revenues began to slip as Wall Street cooled. About 20 percent of state tax revenues are tied to the financial-services industry, by far the most volatile part of the state’s financial picture.
   DiNapoli wouldn’t provide his own estimate, but said the state’s fiscal position could deteriorate.
  Spitzer has pledged not to raise state taxes, but the specter of a budget gap could mean less aid for local schools and governments, service and job cutbacks or borrowing that fiscal watchdogs say would just make the state’s financial position worse in the long run.Â
This entry was posted
on Monday, January 14th, 2008 at 11:12 am by Jay Gallagher.
You can follow any responses to this entry through the RSS 2.0 feed.
Share and Enjoy: | 
Print This Post
| 
Email This Post
Jay Gallagher has covered Albany for Gannett News Service since 1984 and has been Albany Bureau chief since 1989. He`s a native of the Boston area and likes to point out that in this millennium, the score is Red Sox 1 championship, the Yankees 0. 
Cara Matthews has been a statehouse correspondent in the Albany Bureau since August 2005. Prior to that, she covered Putnam County government and politics at The Journal News for nearly five years. Before that, she worked at newspapers in Connecticut and covered the state Legislature for one of them. 
Useless, duplicative Wetchester County government ALONE costs us 2 billion! Add up all the counties in the state and come up with a number for THAT.
A cogent voice in the wilderness.
My comment is awaiting moderation? I’m the only one who even reads or responds to this blog and I’m awaiting moderation?
If the Pataki administration had exercised fiscal responsibility during the good times and Spitzer some austerity in a downturn we would have some surplus and a cushion for the bad times which may be ahead.
I would suggest a follow up article. Ask Mr DiNapoli to point out cost/budget cutting moves to correct this situation and identify those voting for an irresponsible status quo.