Paterson: State Budget Deficit is Growing

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    NEWSLETTERS

    TK
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    Gov. David Paterson proposed his 2010-11 budget plan in mid-January.

    Gov. David Paterson says the projected deficit for the upcoming fiscal year has grown $750 million to more than $8 billion.

    The announcement comes as state Comptroller Thomas DiNapoli says Paterson's proposed budget relies on unrealistic revenue projections.

    The state's projected deficit for fiscal year 2010-2011 is now $8.2 billion. The problem is the recession, and changes in financial services sector compensation that brought in revenue lower than expected.

    The downturn has also increased demand for Medicaid services, which is driving more spending. Paterson will present a plan for closing the shortfall Feb. 9.

    DiNapoli warned Wednesday that Paterson's budget relies on billions of dollars from overly optimistic revenue and savings assumptions that may not happen.