New York State last week announced that its fiscal 1994 budget should remain in balance, despite "large risks" in its forecast of the state's economic growth.
The announcement came in a report issued by the New York State Division of the Budget. The report, which covered the first quarter in the state's fiscal year, is required by state finance law. The state's fiscal year began April 1. "We must continue to monitor economic conditions and carefully manage the state budget," Patrick J. Bulgaro, the state's budget director, said in a press release. "Our state economy continues to be sluggish, and we have not yet sustained job growth."
In the report, Bulgaro noted that bond refinancings worth $89 million will be deposited in a reserve to fund litigation judgments. The report also says the state's general fund spending is project to end the year at $32.261 billion, $39 million lower than what was projected in April.
Although the state's budget appears balanced for the current fiscal year, state officials say they will continue to grapple with a substantial structural budget gap.
John Clarkson, a spokesman for the budget division, said the state is projecting a $944 million budget gap in fiscal 1995 and a $1.577 gap in fiscal 1995.