Statement from Senator Ranzenhofer on Division of Budget's First Quarter Financial Update
“The Division of Budget’s recent update on the State’s fiscal condition proves to State leaders and all Western New Yorkers that a $12 billion increase in spending, $8.5 billion in new taxes and fees and eliminating STAR rebate checks does not solve a fiscal crisis. More spending, new taxes and fees just don’t work. Instead, they only make matters worse.
The State Budget deficit is now at $2.1 Billion, with a projection to grow to $4.6 Billion in 2010-11 and $13.3 Billion in 2011-12. Personal Income tax collections have decreased by $4.2 billion or 35%. General Fund revenues have declined by $305 million. New York has lost 236,000 jobs since the recession began last August.
Only across-the-board spending cuts in every State agency and department will deliver property tax relief and fiscal responsibility that New Yorkers have been demanding for so long. When family’s put together their household budgets, if their revenues decline, then they cut back in spending. New York State should do the same.
New Yorkers cannot wait until September for the Governor’s economic recovery plan. The Governor should call the State Legislature back into session now to address the State’s worsening economic condition.”