Politics on the Hudson

State Comptroller Thomas DiNapoli, who has been critical of the state budget since it was approved April 9, released his preliminary view of the 2008-09 spending plan today—and he doesn’t like what he sees.

He said the budget relies on “risky revenue” that may not materialize and adds $11.5 billion to the state’s burgeoning debt load. DiNapoli warned that future year annually debt could rise to as high as $9.5 billion if cost containments are not made. (The state just closed a $4.6 billion deficit.)

“It’s clear this budget continues New York’s long but not-so-glorious traditions of spending more than the state takes in and borrowing too much,” DiNapoli said. “The reality is that the economy is in rough shape and the worst may still be around the corner. ”

Some of the findings include:
—Increased Reliance on Debt: The state’s current debt of $53 billion is projected to exceed $67 billion by the 2012-13 fiscal year. Debt service payments are estimated to cost the state $7.5 billion annually by 2012-13, a 50 percent increase.
—Risks: The budget contains almost $1.5 billion in revenue that may not materialize, including the conversion of not-for-profit health insurers to for-profit status, sales tax from Native American retailers and VLT revenues.
—Non-Recurring Resources: The Enacted Budget utilizes $2.5 billion in one-shots, including $400 million in “sweeps” from various dedicated funds, such as the Environmental Protection Fund and the Elderly Pharmaceutical Insurance Coverage Fund.
—Off-Budget Spending: The Enacted Budget includes $100 million in new off-budget spending for various housing programs.