New York State’s Deficit Grows
Blame it on the recession.
New York State’s projected 2010 to 2011 deficit has grown to a whopping $8.2 billion thanks to changes in financial services sector compensation that brought it revenue lower than anticipated.
The state of the economy has led to an increased demand for Medicaid, which is driving more spending, too. A plan for closing the shortfall will be presented February 9.
According to Comptroller Thomas DiNapoli, the proposed budget of Gov. David Paterson relies on unrealistic revenue projections and relies on billions from “overly optimistic revenue and savings assumptions that might not happen.”
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