New York’s projected deficit for fiscal 2011 has grown by $750 million in less than three weeks to $8.2 billion, Gov. David Paterson said yesterday. Lower-than-forecast personal income tax collections and higher-than-expected Medicaid costs are driving the widening gap, his office said.
“We need to take serious steps to address this shortfall,” Paterson said in a press release. “Financial sector bonuses aren’t going to bail us out this time. We are going to have to make real cuts.”