Governor Paterson's Administration Says Rising Deficit In Sight
Governor Paterson’s budget office says the state is on course for an estimated $315 million deficit in the current fiscal year.
The Budget Division’s mid-year financial plan update released yesterday blamed the anticipated deficit on the continued sluggish economy.
However, the report said the state’s fiscal health is better than the last two years, which saw midyear budget deficits of $3.2 billion last year, and $1.5 billion the year before.
State Comptroller Thomas DiNapoli says the state budget has fallen out of balance because of overly optimistic revenue projections and higher-than-expected Medicaid spending.