New York State Deficit To Get $750 Million Larger
New York (Associated Press) -- New York Gov. David Paterson said Wednesday the projected deficit for the upcoming fiscal year has grown $750 million to more than $8 billion.
The announcement comes as state Comptroller Thomas DiNapoli says Mr. Paterson's proposed budget relies on unrealistic revenue projections.
The state's projected deficit for fiscal year 2010-2011 is now $8.2 billion. The problem is the recession, and changes in financial services sector compensation that brought in revenue lower than expected.
The downturn has also increased demand for Medicaid services, which is driving more spending. Mr. Paterson will present a plan for closing the shortfall Feb. 9.
Mr. DiNapoli warned Wednesday that Mr. Paterson's budget relies on billions of dollars from overly optimistic revenue and savings assumptions that may not happen.