New York’s projected deficit in the current fiscal year and fiscal 2011 grew by $850 million since last month, according to consensus revenue projections released by the Legislature and governor’s office late Monday night.
The larger deficit, caused by declining revenue, brings Division of Budget deficit projections for the next 13 months to $9 billion. The worsening fiscal picture comes as lawmakers try to pass a budget before the April 1 start of the next fiscal year.
Gov. David Paterson proposed a $134 billion all-funds budget in January that contains unpopular spending cuts to education, health care, local aid, and other sectors. The forecast warns that New York will likely experience a weak economic recovery.
Comptroller Thomas DiNapoli called the consensus forecast “reasonable” but cautioned one-time revenue measures — including a $300 million fee to be paid by the operator of video lottery terminals at Aqueduct Racetrack and a $200 million transfer of funds from the Battery Park City Authority — might not happen.