By Mark Scott
Albany, NY – Governor David Paterson says even with signs the economy is thawing a bit, it's dangerous for some lawmakers to suggest delaying action on the state's fiscal crisis. Paterson's warning comes as State Comptroller Thomas DiNapoli says the budget deficit could hit $4.1 billion.
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September 30th marked the half-way point of the state's fiscal year. And State Comptroller DiNapoli says the budget approved last April has not held up. He says tax revenues continue to fall short of expectations. And that means, says DiNapoli, the deficit could top $4 billion by the end of the fiscal year next March if something is not done.
DiNapoli says the state may be forced to tap into its reserves to meet its cash flow needs. His comments came on the very day the Dow Jones Industrial Average closed above the ten thousand mark. And that has some lawmakers saying they should delay budget cuts in hopes that rising fortunes on Wall Street will lead to an increase in tax revenues. DiNapoli cautions against such thinking.
Governor Paterson agrees. He insists the state must act now on this fiscal year's deficit. Paterson is expected to release his deficit cutting proposals Thursday