The weekly cash burn continues for New York State. Another signal how the 2% property tax cap will be trashed by the powers to be. The Governor and Legislature are going to have to dig deeper for budgets cuts.
“We’ve seen the growth in tax collections slow throughout the year,” DiNapoli said. “Financial sector downsizing, as well as lower profits and bonuses on Wall Street, may result in lower than expected state revenues over the next several months. The Personal Income Tax (PIT) actions taken by the governor and the Legislature this month should reduce projected deficits in the near-term, but balancing next year’s budget will again be a struggle, and current conditions add risk to the upcoming state budget.
Last week, the Legislature and governor agreed on a plan that should offset some of the projected budget shortfall this year as well as over the next three years. While these actions will help, more information on Wall Street bonuses and profits and December tax collections will indicate whether more actions are needed to plug budget gaps…. Full report here
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