NY State Remains Screwed: Tax Revenue Tumbles

Lawmakers will likely be making more cuts to the state budget now that State Comptroller Thomas DiNapoli has revealed "tax revenues declined even more than anticipated in April." According to his press release, the General Fund revenues were 44% less than last year and 5% less (about $239 million) than Governor Paterson's already more-modest projection for the month. DiNapoli warned, "We’ve already tapped nearly all of our unreserved funds so there is very little cushion if revenues continue to fall. We need to watch revenues and spending very closely, because the state may be forced to readjust priorities." Speaking of spending, it's up 12% from last year, mainly due to education, health and the environment. However, other revenue-generating ideas from the state budget—such as increased taxes for higher income brackets and and other fees—won't show up until this month and next. The Department of Taxation and Finance took a glass half full approach, telling the Times, "The state’s finances are in line with the fiscal plan, since decreases in projected revenues were largely offset by decreases in spending."