Politics on the Hudson

 Gov. David Paterson’s 2009-10 budget proposal takes steps to align spending and available revenues in the state, state Comptroller Thomas DiNapoli said today in releasing his analysis of the plan. However, the governor’s budget has a number of risks that “could result in the failure of revenues and savings to materialize, jeopardizing budget balance,” the comptroller said. Beyond that, the state debt continues to be too high, he said.

   Paterson’s budget proposal, which he released a few weeks ago, closes a $1.7 billion deficit in the current fiscal year and $13.7 billion in 2009-10 through cost-savings, use of non-recurring resources, and new taxes and fees.

   “The governor has struggled to present a balanced budget in the face of an unprecedented financial crisis,” DiNapoli said in a statement. “It’s a step in the right direction. But there are risks in the governor’s plan. Many of the proposed revenue raisers and spending reductions may not be enacted or realized. And even though the governor is pushing for more pay-as-you-go capital projects, debt levels are still too high.”

   Other findings by the Comptroller’s Office include:

  —Spending continues to increase faster than revenues. General fund spending is projected to grow at an average annual rate of 5.4 percent through fiscal year 2012-13, but revenue will go up only 3.8 percent.

  —There will be average annual debt issuances of $5.3 billion over five years, higher than the $3.6 billion annual average for the previous five years. Annual debt payments are expected to reach $7.6 billion in five years, 40 percent more than debt payments in 2008-09.

  —The projected 2012-13 deficit would decrease from $19.6 billion to $5.5 billion in 2012-13. The total deficit for fiscal yeras 2010-11 through 2012-13 would fall from a projected $55.3 billion to $11.4 billion.

  —The budget recommends billions of dollars in new or increased revenue proposals that may be hard to enact. Some have previously been rejected.

  —The proposal includes $3.8 billion in Medicaid and health-care savings and revenues, but state-funded Medicaid spending would spike by 3.8 percent ($587 million).

  —School aid would be reduced by about 3.3 percent ($698 million).

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