By FREDRIC U. DICKER State Editor
Posted: 4:38 am
July 19, 2008
ALBANY - Gov. Paterson warned yesterday that grim news showing a sharp drop in state business tax collections was further proof that New York faces "enormous fiscal challenges in the months ahead."
"Revenues are declining and throughout New York families are feeling the pain every day when they pump expensive gas into their cars or grapple with the rising costs of food," Paterson told The Post.
The governor, who has warned that the state faces massive deficits totaling more than $20 billion over the next three years, made his comments in response to a report from state Comptroller Tom DiNapoli showing that anticipated first-quarter business-tax collections were down by $453 million.
Overall tax receipts were down by a lower amount - $195 million - because of higher-than-expected federal revenues and strong personal income-tax payments.
But DiNapoli warned the growth in revenue probably won't continue. "The drop in business-tax collections is a more realistic reflection of the current economic climate and is a strong signal that the state must spend with caution." he said.
"Last year was a roller coaster and the ride isn't over yet," DiNapoli said.
