Tuesday, March 1, 2011

Assembly Sees Red

The New York Assembly's outlook for the upcoming fiscal year isn't as rosy as the bleak picture presented by Gov. Andrew Cuomo and the slightly optimistic vision laid out by the Senate.
The Assembly announced on Monday that they forecast the state's revenue as $37 million below the governor's forecast, and about half a billion below the Senate's projection. This is in addition to a $49 million shortfall for this year, which is twice what the Senate believes the executive's budget for 2010-2011 is off by.
They note the primary decline in revenue is the loss in $1 billion from the Personal Income Tax Surcharge.
According to the report, "employment recovery has been slow with only 11.6 percent of the lost jobs regained as of January 2011. It also points to the uncertainties surrounding Wall Street and the financial industries as they emerge from the recent economic crisis and the impact it may have on the state’s economy."
Their predictions also include the enforcement of current laws regarding reservation sales of cigarettes to non-Indians in the next fiscal year. They also note that the instability in oil prices could negatively impact the state's economic recovery, which would skew all of their predictions.
All of this seems to represent the hard line in the sand that the Assembly is trying to draw for budget negotiations. They may not be able to get the PIT surcharge back, but they could combat additional tax cuts with their position on the state's ever increasing deficit.

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