Last Friday, State Comptroller Tom DiNapoli’s office issued a report which shows that the state’s fiscal condition is beginning to look “cloudy” due to lower-than-expected tax receipts and the potential for federal cuts and tax changes.

The Comptroller’s report on the state’s Enacted Budget Financial Plan finds that personal income tax receipts in the first quarter of the fiscal year were $1.7 billion lower than February projections and $1.5 billion lower than what was collected in the same period last fiscal year. It also notes that federal aid for health care programs remains at risk.

While New York State’s budget has come a long way in the last few years in terms of limiting its increases in spending, state spending continues to increase.  If revenues continue to fall short, we may be looking at budget gaps in upcoming fiscal years.