ALBANY, N.Y. — New York state could be headed for financial trouble because of the “triple threat” of federal spending cuts, a looming budget deficit and anemic tax revenues, state Comptroller Thomas DiNapoli warned Tuesday.
In a report on the state’s finances, DiNapoli said and additional funding cuts from Washington could “place significant strain” on the state’s bottom line.
“New York faces serious fiscal challenges,” the Democrat said. “Projected budget gaps, weaker than expected personal income tax collections and cuts to federal programs combine for a triple threat of budgetary risks.”
New York state is projected to face a $4 billion deficit in the next fiscal year. Tax collections in the first six months of the current year are down nearly $768 million, or 2.1 percent, when compared with the same period last year, according to DiNapoli’s report.
The state has already seen cuts in federal health care funding, and Democratic Gov. Andrew Cuomo has been sharply critical of proposals in Washington that would reduce spending on health care even more. A spokesman for Cuomo’s budget office said the state’s number crunchers are on guard.
“With significant risks stemming from Washington, we are closely monitoring the situation,” said budget spokesman Morris Peters.
The Legislature is next scheduled to reconvene in January and begin the work of crafting a new budget, which they hope to pass before the new fiscal year begins April 1. Last year’s budget totaled $153 billion.
Cuomo has floated the idea of calling lawmakers back this fall to address federal spending cuts but so far lawmakers have expressed little interest.