State Comptroller Thomas P. DiNapoli
Statement on 2009-10 State Budget
New York faced an extraordinary challenge to adopt a 2009-10 State Budget in the context of a daunting recession. My preliminary review of the budget indicates it does not adequately respond to today’s economic realities.
The budget is not a long-term solution to New York’s propensity to spend more than the state can afford. While the budget proposes to close an unprecedented gap, it does so by an over reliance on non-recurring federal stimulus funds and new tax revenues projected to materialize at a time of declining tax receipts.
This is essentially a buy-time budget, based on a hope that the economy recovers quickly. It’s a very fragile basket to place all the taxpayers’ eggs in. Instead of using the Federal stimulus to restructure the financial plan and match projected revenues to long term growth in spending, the budget uses stimulus funds as a short-term fix.
The danger is that New York could end up right back where we started, with huge budget gaps and an unsustainable level of spending. I will provide a more detailed review of the enacted budget shortly.