The Division of the Budget said today in a new report that the state’s budget outlook is looking increasingly dire as the fiscal year progresses.
According to the report, “Weak and unsettled economic conditions around the world — illustrated by the Eurozone financial crisis, volatility in the financial markets, and persistently disappointing data on employment, consumer confidence, and income — have darkened the State’s fiscal outlook. The significant positive receipts results early in the fiscal year have been largely eroded as the economy weakened in the summer months. 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 report is the Midyear Update to the state’s FY 2012 Financial Plan and revises the state’s budgetary projections for the current year through FY 2015 based on a review of current financial data and operations.
Earlier this month, the administration of Gov. Andrew Cuomo had come under criticism for delaying releasing the report.
Now, DOB estimates that the General Fund has a budget shortfall of $350 million in the current fiscal year and that the gap for FY 2013 is in the range of $3.0 billion to $3.5 billion. The agency plans to immediately institute a fiscal management plan, and, Mr. Cuomo’s office notes that if the savings from the management plan prove insufficient to eliminate the shortfall, the Governor will call the Legislature into a special session to balance the books.