New York State’s budget deficit grew by $7 billion since the start of the year, bringing the state’s cumulative three-year budget gap to $34.3 billion, a report from the New York State Comptroller’s Office found.
Those deficit increases bring the state’s budget gaps as a share of spending to levels not seen since the 2008 global financial crisis.
The Comptroller’s Office attributed the state’s worsening financial picture to a slowing economy , spending growth and “drastic” reductions in federal spending signed into law by President Donald Trump last month.
“Like other states, New York now faces a new crisis it has to overcome: the federal reconciliation bill is likely just the beginning of what is intended to be a fundamental restructuring of the relationship between the federal g