Taxes Revenue from Rich Fails to Materialize: NY budget deficit could reach $8.2B

The New York Post reports:

The pressure to find new ways to close New York's budget gap mounted Wednesday after Gov. David Paterson announced that the projected deficit for the upcoming fiscal year has grown $750 million to more than $8 billion.

"The money simply isn't there," Paterson said.

The new fiscal year begins April 1. Paterson plans to outline his proposals on Tuesday to close the projected $8.2 billion shortfall. Until then, he isn't releasing any details.

The Legislature, which has been holding budget hearings, would have to agree to any cuts or revenue hikes. State Comptroller Thomas DiNapoli said the governor's proposed budget relies on unrealistic revenue projections and leading lawmakers questioned the governor's numbers Wednesday.

Paterson said the recession and smaller and fewer bonuses on Wall Street and in the financial services sector resulted in less revenue. "Financial sector bonuses aren't going to bail us out this time," he said.

The state took in less money than projected through a tax on people making more than $200,000 and Medicaid costs were $400 million higher than expected.

New York should have even bigger problem with the over 200K crowd, after Obama's tax increases kick in.