Over the two-year forecast period, the Committee Staff estimate is $523 million higher than the Executive.

State Fiscal Year 1998-99

· General Fund and Lottery receipts are projected to total $38,242 million, representing growth of 6.0 percent, or $2,155 million, over State Fiscal Year 1997-98.

· While the economy grew at a healthy pace this year, the instability in other world markets impacted some sectors of New York's economy, especially New York's financial sector. This resulted in lower bonus income and corporate profits than last year. These factors are tied closely to Personal Income Tax and Business Tax revenues.

· Previously enacted tax reductions will reduce revenues by approximately $1.1 billion.

· The Committee Staff estimate is $17 million higher than the Executive.

State Fiscal Year 1999-2000

· General Fund and Lottery receipts are projected to total $40,763 million, representing growth of 6.6 percent, or $2,521 million, over State Fiscal Year 1998-99.

· The forecast reflects continued, but moderate, growth in both the national and state economies.

· Previously enacted tax reductions will once again reduce revenues by approximately $2.0 billion.

· The Committee Staff estimate is $506 million higher than the Executive.

In an effort to reach consensus, the Ways and Means Committee staff lowered its overall receipts projection by $150 million from its original forecast.