GOVERNOR SPITZER OUTLINES 21-DAY AMENDMENTS TO THE 2008-09 EXECUTIVE BUDGET
Worsening Economic Climate Requires Additional Savings Actions to Address Decline in Expected Revenues
Governor Eliot Spitzer today outlined his 21-day amendments to the 2008-09 Executive Budget. These amendments contain significant savings actions necessary in the worsening economic climate. These actions address a projected decline of $384 million in anticipated revenue for the 2008-09 fiscal year. He will formally submit these amendments to the Legislature tomorrow.
"The continued worsening outlook for the economy demands additional tough choices," said Governor Spitzer. "With the submission of these amendments, we are taking the steps necessary to ensure the fiscal integrity of our state government."
The $384 million decline in revenue has been addressed through $237 million in net savings actions and $147 million in overall spending re-estimates made after evaluating the most recent financial results available to the state. After the submission of the 21-day amendments, state operating fund spending is projected to be $81.6 billion in 2008-09, a 4.8 percent increase compared to 2007-08.
The Division of the Budget (DOB) currently projects General Fund budget gaps of $3.6 billion in 2009-10, $6.1 billion in 2010-11, and $7.2 billion in 2011-12, assuming enactment of all proposed Executive Budget recommendations. These represent increases of $289 million in 2009-10, $452 million in 2009-10, and $359 million in 2011-12 compared to the initial 2008-09 Executive Budget projections.
Although the Constitution allows 30 days to submit amendments to the Executive Budget, Governor Spitzer has done so after only 21 days for a second straight year, in accordance with the budget reform legislation passed in January 2007. It is part of his efforts, along with the "Quick Start" discussions with the Legislature that began in November, to help ensure an on-time budget.
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