Albany, NY, Aug 04, 2011 — Governor Cuomo's budget office reports that the state continues to be on track with a balanced spending plan, one quarter of the way into the new fiscal year.
The governor’s budget office says three months into the new fiscal year, tax receipts and spending are on track, and the state has even collected $800 million more dollars in revenues than predicted, but attribute the surplus to the timing of certain tax payments, and warns those numbers will likely not be repeated. A temporary tax on wealthy New Yorkers, which has been generated additional money for the state’s coffers, expires at the end of the calendar year.
The budget report says tentative contract deals reached with the state’s two major state worker unions will also close a hole of $450 million dollars in designated workforce savings.
Even though Cuomo and the legislature cut $10 billion dollars in spending growth from the budget, the report still predicts gaps of $2.4 billion dollars next year, rising to $4.6 billion in 2014, if current spending levels remain the same.