Politics on the Hudson

In another sign of the state’s fiscal problems, Comptroller Thomas DiNapoli warned today that the state’s mid-year budget deficit could grow by another $1 billion to a total of $4.1 billion if present trends continue.

“I said in April that this was a ‘buy time’ budget. Now the time is up,” DiNapoli said.

DiNapoli’s forecast was the result of state revenue continuing to decline. He said the state erred in April when it put together the 2009-10 budget by not curbing spending, saying the state could run out of money if changes aren’t made.

Gov. David Paterson on Thursday will unveil his plan to close the gap, which he has indicated is about $3 billion. That’s about $1 billion more than Paterson estimated in July.

DiNapoli warned that the state could face a $9 billion deficit in the 2010-11 fiscal year, which starts April 1. Paterson’s budget office predicted a $4.6 billion deficit in the next fiscal year.

DiNapoli said the state may need to borrow from its short-term investments to cover payments this year, saying the state faces running out of money.