Last Wednesday, the state Division of Budget (DOB) released its annual mid-year report on the state’s finances. The report shows the state’s deficit for the upcoming year at $982 million, but
the report does not estimate the impact of Hurricane Sandy on the state’s finances. Gov. Cuomo has warned that the storm could increase the state’s deficit by $1 billion next year.
DOB expects to include updated numbers on the storm’s fiscal impact when Gov. Cuomo releases his 2013-2014 fiscal plan in January.
This is a reminder that the state’s fiscal problems continue, and will not be going away any time soon. Depending on how the state does with Congress in terms of covering storm related costs, we may be facing a much, much larger fiscal shortfall in next year’s state budget.