The Governor has revised his revenue estimates only two weeks after presenting his Executive Budget.
The new estimates assume a financial plan shortfall of $750 million, some of that due to reduced revenues and some due to higher demand for Medicaid services.
These two-week revisions strongly suggest that the Governor's initial budget submission did not present an accurate picture of the state's finances. Furthermore, the revenue projections still do not accurately reflect the real shortfall in January receipts, or realistic expectations regarding revenues in February and March.
To meet the Governor's new estimates, revenues in February and March would need to grow by 37 percent over last year. This level of increase appears to be highly unlikely, as revenue growth in the first ten months of the 2009-2010 fiscal year has been flat or declined slightly in comparison to the previous year.
I urge the Governor to provide the people of New York State with realistic revenue estimates in his 21-day budget amendments.