Recession End In Late 2009, State Predicts
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- April
- 28
New York’s budget analysts predicted today that the national recession will end in the third quarter this year, but the state’s finances will still take years to recover, particularly after federal stimulus aid dries up.
Estimates from the state Budget Division show modest budget gaps for New York government next fiscal year, but higher deficits in future years – as much as a $13.7 billion gap in the 2012-13 fiscal year when federal stimulus money runs out.
Gov. David Paterson’s budget analysts sought today to put a positive spin on the recently completed 2009-10 spending plan, which closes a $17.7 billion budget gap – the biggest deficit in state history.
“The economy is still very uncertain. We do hope we’re seeing a turning point, but we don’t know what the future holds for us,” said outgoing Budget Director Laura Anglin. “And we’re still very cautious as we move forward and believe that we are positioned well for the future.”
Paterson was widely criticized for a budget process that was deemed secretive and lacking in fiscal discipline. But Paterson’s aides said the budget cut spending and raised new revenue without eliminating vital services.
The 2009-10 fiscal year, which started April 1, hopes to raise $4 billion through increases in income taxes on the wealthy as part of $5.3 billion in new taxes and fees. It also eliminates a $1.7 billion property-tax rebate program that provided rebate checks to homeowners.
The budget uses $6.2 billion in federal stimulus aid to help balance the budget.
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on Tuesday, April 28th, 2009 at 2:38 pm by Joseph Spector.
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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. 
