DiNapoli warns of burgeoning state budget gaps

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New York could face rising budget gaps if the economy doesn’t improve and the state lets some taxes expire as planned, Comptroller Thomas DiNapoli said in a report today.

The state’s five-year fiscal outlook expects budget gaps of $2 billion next fiscal year and $2.9 billion in the two following years. DiNapoli warned that the budget gaps could be as high as $6 billion if the state’s revenue and spending projections aren’t met.

“The use of non-recurring or temporary resources to meet recurring expenses exacerbates the structural deficit, making future budgeting more difficult,” the report said.

Gov. Andrew Cuomo and state lawmakers in March approved a $135 billion budget for the 2013-14 fiscal year, which started April 1. The budget closed a $1.3 billion budget gap and increased spending for schools by more than $1 billion, to roughly $21 billion.

The plan extends higher income taxes on millionaires, and $350 checks will go to families with children younger than 17 in 2012 with incomes between $40,000 and $300,000.
The budget also includes tax breaks for businesses and includes a three-year phase-in of an increase in the minimum wage — from $7.25 an hour to $9 an hour by 2016.

DiNapoli said that while the state’s finances are better than in recent years, it still faces challenges. The state had a $17 billion deficit in 2009 and a $10 billion deficit in 2011.

“There’s no doubt New York is in a better budget position now than it was a short time ago,” DiNapoli said in a statement. “Still, without doing more to align recurring spending with recurring revenue, out-year gaps will likely continue. For years, the state has used one-shots and temporary fixes to pay the bills.”

Cuomo has touted a Start-Up NY plan that will offer no taxes to businesses that locate near college campuses. Cuomo said the program will come at no cost to taxpayers, but DiNapoli warned that the program could mean the state is forsaking future revenue from new businesses.

“While DOB does not expect this to affect revenues in SFY 2013-14, growth in future revenue could be affected as new companies take advantage of this program,” the report said.

2013-14 1st Quarter Review by jspector

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  1. What good is what Mr.DiNapoli is saying ( particularly keeping in mind the Hot election or selections hotter season!,! Seriously, what difference does this type of assertions make when the ” wrong and right ” cannot be implemented as I am particularly concerned of an Office of Public Trust without Powers and unlimited ( let me say ) sermons jurisdictions all over The State of New York?

    What is the Law or Its Power of Just Check and not balance as The So-called Lawmakers Practices theirs Preachers!

    Think about it! What not you have done to the State but include what exactly have you done to the Country!

    As a matter of factions a layman has better compressions of what’s going on then the Office of The New York State Controller that now a disgraced Former Governor is a contender at!

    May be ” . . . that’s his Resignation Speech in continuedation when he had no further shame after getting humiliated mentioned ” the Greatest Glory of a man!..quote right next to his Wife in almost tears holding them back!.. What I say on Mrs. Elliot Spitzer’ s face that Press Conference aired on national television! I can never forget ever in My life! She is a very Graceful Woman that I can easily comparé to the gracefulness of Mrs. Jackie Kennedy!

    But, if that what Spitzer said was may be true for ” a Man ” . . . But!, what I wondering, if that really applies to him? And, if it does or doesn’t then I think a Real Man like me never never deceive his Beautiful Wife like that!

    HABIBHASAN-An American Storyteller

    DiNapoli warned that the budget gaps could be as high as $6 billion if the state’s revenue and spending projections aren’t met.

    “The use of non-recurring or temporary resources to meet recurring expenses exacerbates the structural deficit, making future budgeting more difficult,” the report said.

    Gov. Andrew Cuomo and state lawmakers in March approved a $135 billion budget for the 2013-14 fiscal year, which started April 1. The budget closed a $1.3 billion budget gap and increased spending for schools by more than $1 billion, to roughly $21 billion.