A Precarious Budget
April 9th, 2008
The state has agreed on a budget but it’s not exactly clear what that means. Some observers think the state won’t bring in enough revenue to fund the $121.7 billion spending plan. The deal includes a 4.5 percent increase in state operating funds — now pegged at more than $80 billion.
“The money is simply not there,” State Assemblymember James Hayes told Capitol Confidential. “A crushing blow… will come later.”
“At the very time New York faces the daunting threats of a national economic recession and an underperforming state economy, the legislature still has not learned to live within its means,” Assembly Minority Leader James Tedisco said. “This budget spends like there is no tomorrow. But tomorrow will arrive and with it, a very steep price tag.”
Certainly some of the handwriting seems on the wall. State Comptroller Thomas DiNapoli has reported that revenues for the past fiscal year were lower than anticipated and the decline is expected to continue. And in a speech yesterday, Gov. David Paterson took a grim view as well, warning that the budget would have to be revised with spending slashed by 5 to 10 percent.
By Gail Robinson on April 9, 2008, 3:13 pmIn category: Albany, Economy, Public Finance | No Comments »



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