Politics on the Hudson

Reflecting the weak economy, business-tax collections for the first quarter of the year were $453 million less than anticipated, state Comptroller Thomas DiNapoli said today. Yet overall revenue was up, largely because of reimbursements from the federal government tied to money already spent. Bank-tax receipts plummeted 54 percent. “This looks like a strong start to the fiscal year, but looks can be deceiving,” DiNapoli said. “The growth in revenue probably won’t continue. The drop in business tax collections is a more realistic reflection of the current economic climate and is a strong signal that the state must spend with caution. Last year was a roller coaster and the ride isn’t over yet.” Gov. David Paterson is “monitoring the situation,’’ and the state will release an updated plan on its finances soon, said state Budget Division spokesman Matt Anderson. “As Gov. Paterson has consistently noted, we are clearly dealing with a struggling economy,’’ Anderson said. |  Email This