NYS budget $1.7B short

Gov. Cuomo and lawmakers will have to close at least a $1.7 billion shortfall to balance next year’s state budget as they face reelection, according to a report released Friday.

In January, Cuomo projected a $700 million surplus for the 2018-2019 fiscal year beginning April 1.

The gap is largely attributed to a surprising drop in anticipated tax revenues, according to the analysis released by Cuomo budget director Robert Mujica.

Tax receipts were some $692 million lower than anticipated through September — the first half of the current fiscal year.

Given the uncertainties, budget officials are reducing the annual estimate for state tax receipts by about $850 million this year and the next two years.

“The disappointing tax collections to date are at odds with key economic indicators, which signal an improving economy,” the report said.

Budget officials speculated that proposed changes in the federal tax code could be impacting the behavior of high-income taxpayers.

The state’s operating budget this year is $98 billion. When including all federal dollars and funds, the budget comes to $153.1 billion.

Under current spending trends, the budget gap is estimated at $4.4 billion. But Cuomo has imposed a 2 percent spending cap, which reduces the shortfall to $1.7 billion.