Weak and unsettled economic conditions worldwide have darkened New York’s fiscal outlook, the Division of the Budget said in the midyear update to its fiscal 2012 financial plan.
“The significant positive receipts results early in the fiscal year have been largely eroded as the economy weakened in the summer months,” the Division of Budget said in a statement. “With the prospect of a weak bonus season on Wall Street, even more negative pressure is being placed on the state’s receipts outlook.”
The midyear update revised New York’s budgetary projections for the current year through fiscal 2015 based on a review of current financial data and operations.
The agency estimates that the general fund has a shortfall of $350 million in the current fiscal year. To eliminate that, it will immediately institute a fiscal management plan.
New York has general obligation ratings of AA from Standard & Poor’s and Fitch Ratings, and Aa2 from Moody’s Investors Service.