New projected on state deficit — $2.1 billion
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- July
- 30
The state Division of Budget announced this morning that, based on the first quarter of fiscal year, New York has an estimated $2.1 billion budget deficit. Left unchecked, it would grow to $4.6 billion in 2010-11.
Gov. David Paterson said he would release an economic and financial recovery plan in September. He has already said he would call lawmakers into special session this September to cut the budget.
“New York, like virtually every state in the nation, continues to experience historic economic difficulties and further action is needed to control spending,” the governor said in a statement.
“Although the budget enacted in April took substantial action to close a $20.1 billion budget gap, the fact remains that revenues have continued to fall, and this will force us to make further difficult choices,” he said.
General fund revenues are projected to be $1.97 billion, or 3.6 percent, lower than what was anticipated. The remainder of the $2.1 billion deficit is the result of $151 million in higher general fund payouts, including $90 million more for fringe benefits and $33 million for a settlement with the federal governent on school health care.
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on Thursday, July 30th, 2009 at 10:55 am by Cara Matthews.
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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. 
