ALBANY, N.Y. (NEWS10) – The state is facing a budget deficit this year, but the state comptroller explains that this is something the state has been heading into for quite a while now.
With the Senate Majority said they plan to cap taxes and state spending on Tuesday, the difference has to come from somewhere.
“For a period of months we’ve had a shortfall of revenues coming in lower than projected,” State Comptroller Tom Dinapoli said.
Dinapoli says the state collecting less money and the federal tax bill are leading factors on why the state is facing a deficit.
“What we anticipate will be significant federal budget cuts is really going to put New York in a very disadvantaged position.”
These budget concerns could also plague New York not just this year, but for the next few years, with a possible $9 billion deficit in 2019. Dinapoli says his big concern, is that the state will borrow more money to make up for the deficit.
“New York already is a very highly indebted state so I would really caution using that as an option.”
This is not worrying Senate Republicans, who held a press conference on Tuesday, outlining how they plan to lower taxes and control state spending.
“Really from our starting point, we’ve done over $4.2 billion in tax cuts,” Senate Majority Leader John Flanagan (R-Long Island) said.
Some of the legislation that is outlined in the Senate Majority’s Affordability agenda is making the property tax cap permanent and eliminating school property taxes for seniors over the next 10 years.
“New Yorkers are leaving this state by the tens of thousands and its not because of the federal government, its because they can’t afford New York’s taxes,” Senator Fred Akshar (R-Binghamton) said.
When asked how can the state afford to keep its two percent cap on state spending and cut taxes?
“We can pay for these by doing things the right way and again this is about what we are doing to keep people in the state of New York, how we are making things affordable and what we are doing to actually create jobs,” Flanagan said.
Governor Andrew Cuomo’s budget proposal will be delivered next week.