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New York in three billion dollar hole

Nov 15, 2011 12:04 am
Jimmy Vielkind in Capitol Confidential reports that New York State’s budget deficit grew $350 million to around $3.5 billion total. Vielkind says the "mid-year financial report" is causing a stir in Albany. The document missed its legal deadline, and now Gov. Andrew Cuomo says its announcement may bring state legislators back to Albany early to, presumably, cut more spending or reintroduce the so-called millionaire's tax. The state's financial report said:
"Weak and unsettled economic conditions around the world — illustrated by the Eurozone financial crisis, volatility in the financial markets, and persistently disappointing data on employment, consumer confidence, and income — have darkened the State’s fiscal outlook. The significant positive receipts results early in the fiscal year have been largely eroded as the economy weakened in the summer months. With the prospect of a weak bonus season on Wall Street, even more negative pressure is being placed on the State’s receipts outlook."
Read the full story in Capitol Confidential.