The Prodigal Cuomo's spending has the State finances on a razor edge according to Comptroller DiNapoli. But the reality for Cuomo and DiNapoli is the State is already in the red. The gimmicks, fantasy revenue expectations and unpaid delayed bills do not balance a budget. Specifically,
1. There are $500 million in delayed personal income tax refunds.
2. Franklin County County Manager and Budget Officer Thomas Leitz said the state owes the county reimbursements for services it has already provided through its Department of Social Services, its Nursing Home and the Public Nursing Services... as of last Thursday, it is owed $3.8 million from Albany.
3. Clinton County is owed about $6.1 million, according to the County Treasurer's Office.
4. There are 40+ other counties owed money by NY State.
5. The State budget expected a growth in income tax revenues to follow from National growth and that fantasy is now devastated as Billionaire investor George Soros said he believed the United States was already experiencing the pain of a double dip recession.
6. NYS Income tax revenues from NYC financial businesses are a major source of NYS revenues, but how do they earn money if investors are dumping everything.
7. Expected increases in Sales tax revenue is another budget pipe dream as "Consumers earned less and spent less ... The government data shows how Americans are struggling after the worst recession since the Great Depression.The Labor Department says in its annual survey of consumer behavior that spending fell 2 percent last year."
Comptroller Dinapoli had said, "Still, the Blue Chip consensus economic forecasts for growth continue to be revised downward, raising concerns for the remainder of the fiscal year.”
Will Comptroller DiNapoli have this honest talk with the Prodigal Cuomo?
P.S. We can't borrow more. New York Debt per person including local debt is $24,195. For a family of four that is about $97,000. (New York leads California in official debt per person by 29% and the debt is greater than the average for all States by 73%.)