NY state comptroller discusses budget challenges for 2018

ALBANY, N.Y. » Revenues from the ongoing Wall Street rally will be a “bright spot” heading into potentially difficult state budget talks complicated by the federal tax overhaul, but New York government leaders shouldn’t count on stock market gains to cover a deficit projected to be in the billions of dollars, the state’s top fiscal officer said Tuesday.

State Compt rol ler Thomas DiNapoli spoke Tuesday morning at a forum held at the Times Union newspaper building in suburban Albany. DiNapoli discussed the challenges facing lawmakers and fellow Democrat Gov. Andrew Cuomo as state leaders negotiate a state budget.

Those challenges include a budget deficit estimated at more than $4 billion and the recent federal tax overhaul, which caps a deduction for state and local taxes at $10,000. Such a change will mean sig- nificantly higher taxes for many residents in high-tax states such as New York.

Those are just two of the major issues Cuomo and the Legislature will wrangle over as they formulate a spending plan due by April 1, the start of the state’s new fiscal year.

The overall impact the new tax laws will have on the state budget is still uncertain, DiNapoli said. Cuomo has hinted he might propose a payroll tax to replace or build on the state’s income tax, a move that would require the employer to also pay a portion.

“Frankly, we’re waiting to see what the governor puts on the table” when Cuomo releases his spending plan next week, DiNapoli said.

The Senate’s Republi- can leaders have their own proposals to cut taxes or cap state spending. Senate Leader John Flanagan, R-Long Island, on Tuesday dismissed talk of a new payroll tax.