Governor Paterson says budget deficit is growing
ALBANY, N.Y. (AP) - New York Governor David Paterson says the
projected deficit for the upcoming fiscal year has grown $750 million to more than $8 billion. The announcement comes as state Comptroller Thomas DiNapoli says Paterson's proposed budget relies on unrealistic revenue projections. The state's projected deficit for fiscal year 2010-2011 is now $8.2 billion. The problem is the recession, and changes in financial services sector compensation that brought in revenue lower than expected. The downturn has also increased demand for Medicaid services, which is driving more spending. Paterson will present a plan for closing the shortfall February 9. DiNapoli warned Wednesday that Paterson's budget relies on billions of dollars from overly optimistic revenue and savings assumptions that may not happen. (Copyright 2010 by The Associated Press. All Rights Reserved.) |
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