ALBANY, N.Y. — New York state Comptroller Thomas DiNapoli warned Thursday that the state budget adopted by the Legislature and Gov. David Paterson as a model of fiscal responsibility actually relies on risky and temporary funding that could put New York in another crisis. The Democratic comptroller’s annual analysis released Thursday says the budget enacted four months late totals nearly...
ALBANY, N.Y. — New York state Comptroller Thomas DiNapoli warned Thursday that the state budget adopted by the Legislature and Gov. David Paterson as a model of fiscal responsibility actually relies on risky and temporary funding that could put New York in another crisis.
The Democratic comptroller’s annual analysis released Thursday says the budget enacted four months late totals nearly $136 billion.
“After months of budget dysfunction and delay, New York is still on the edge of a very steep financial cliff,” DiNapoli said. “Now there is danger that risky resources will fall short and create a gap in this year’s budget. State spending continues to grow much more quickly than revenues.”
Morgan Hook, spokesman for the Democratic governor, noted billions in new spending is actually federal stimulus money, and the 2010-11 budget avoids going to market to borrow and this year doesn’t include increasing the income tax, although it relies on a cigarette tax increase and other revenue raisers. The budget had to close a $9.2 billion deficit in a fiscal crisis.
“Once again, it’s Monday morning and Comptroller DiNapoli is playing quarterback,” Hook said, adding that DiNapoli didn’t endorse Paterson’s budget reform package. “Is the comptroller suggesting that we should have declined federal stimulus money? Is he suggesting that we enact a permanent tax increase instead of the temporary one that was put in place?”
DiNapoli said the current budget boosts spending just more than 7 percent over the last fiscal year and depends on $16 billion in temporary funds and $3 billion in revenue that may not be fully realized. He said spending is rising faster than revenues.
DiNapoli warns the current spending rate will produce budget gaps of $15.6 billion in 2013-14 and a cumulative gap of $37 billion through 2013-14.