Budget gaps in New York State are projected to soar to a combined $36 billion over the next three years, which is $15 billion higher than initially estimated.
The state Division of Budget released its revised financial assessment, attributing the increasing gaps to a combination of reduced tax revenue and increased spending, including the recently approved $229 billion budget.
The downward trajectory of tax receipts, with estimates lowered by nearly $37 billion compared to a year ago, and the diminishing federal aid have further contributed to the fiscal strain.
While the projections are subject to change based on revenue and spending targets, the state must maintain a balanced budget.
Fiscal watchdog groups have expressed concerns about New York’s ability to weather an economic downturn given the current budgetary landscape.
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