Last Tuesday, State Comptroller Tom DiNapoli released a report that expresses concerns about the state’s fiscal situation, finding lower-than-expected tax revenue and a $4.1 billion budget gap.

The report, which looks at the first six months of the state’s current fiscal year, found tax collections totaled $36.1 billion, or $386.6 million below estimates. Personal income tax collections total $22.2 billion, a decline of $1.3 billion. The Comptroller noted that that some tax collections could be influenced by potential federal tax law changes, but if tax receipts continue to fall below projections, the state’s 2018-19 projected $4 billion budget deficit could grow.

Comptroller DiNapoli said:

“New York faces serious fiscal challenges. Projected budget gaps, weaker than expected personal income tax collections and cuts to federal programs combine for a triple threat of budgetary risks.  Any federal funding reductions not already assumed in the Financial Plan could force difficult decisions regarding the funding of important programs and services.”

This is obviously not a good sign as we look ahead to the state’s 2018-19 budget. Recent state budgets have not relied on state tax increases. We will be calling on the Governor and the Legislature make the difficult choices to needed to reduce the state’s unsustainable spending levels.