(August 1, 2007)
State Budget Division increases its estimates of state budget gaps in next three years
Projected state budget gaps in each of the next three years are even larger than had been expected, according to revised estimates in a new report from the state Division of the Budget (DOB).
DOB is projecting budgets gaps of $3.6 billion in 2008-09, $5.3 billion in 2009-10, and $6.7 billion in 2010-11. In the budget plan enacted earlier this year, the projected gaps were $3.1 billion in 2008-09, $4.8 billion in 2009-10, and $6.6 billion in 2010-11.
The revised estimates were published by DOB in its first quarterly update to the 2007-08 financial plan, which was released July 30.
The revised plan also projects growth in all-funds spending of 7.8 percent, which is 47 percent more than the projected increase in personal income and more than twice the projected rate of inflation.
The DOB report attributed the increased in projected budget gaps to several factors, including a delay in the opening of a gambling facility at the Aqueduct Race Track in Queens and legislative actions this year that will increase spending.