Comptroller: Deficit Even Larger

By Karen DeWitt

Albany, NY – The State's Comptroller says the state's budget gap is growing even larger, and that New York faces a "perilous imbalance".

Comptroller Tom DiNapoli says the current state budget, approved by Governor Paterson and lawmakers in April, "simply has not held together", and that the state may have to borrow money as soon as the end of October, to meet cash flow needs, like making payments to schools and local governments.

"If we stay on the current path, New York will run out of cash," DiNapoli said.

DiNapoli says his mid year report also predicts that the budget deficit will grow by another billion dollars, to a total of $4 billion dollars, largely due to a drop in personal income tax collections.

Governor David Paterson is expected to announce a plan to cut $2.5 billion dollars from the state budget on Thursday.

Comptroller's Report