State Budget "Quick Start" Report Issued Today
Today, the Division of Budget (DOB) and fiscal committees for the state Senate and Assembly released a joint “quick start” budget report, summarizing each party’s evaluation of New York State’s economic outlook. The joint report is not a consensus report, but presents areas where there is agreement and disagreement on general economic trends, along with risks to each forecast. DOB projects a budget deficit of $3.2 billion for the remainder of the current fiscal year and $6.8 for 2010-2011.
To close the current year deficit and begin addressing next year’s deficit, the Governor has proposed a two-year Deficit Reduction Plan (DRP) that calls for $5 billion in savings, including deep cuts to Medicaid and other health care funding.
The Assembly and Senate project Medicaid spending in state fiscal year (SFY) 2010-2011 to be $609 million (3.9%) and $100 million (0.6%), respectively, lower than DOB’s projections.
Earlier this week, DOB, both houses of the State Legislature, and the Comptroller’s office met to discuss their individual forecasts of state receipts and expenditures. This joint report, as well as the entire “quick start” budget process, serves as a starting point for discussions on next fiscal year’s budget (2010-2011). Contact: Nicholas Henley