ALBANY (AP) -- New York state Comptroller Thomas DiNapoli on Monday projected that the state's current deficit is nearly $1 billion, three times larger than estimated by Gov. David Paterson.
The executive and legislative branches' fiscal chiefs in their first public budget meeting Monday agreed that although there are signs of slow recovery in jobs and wages, the end of the recession is going to be followed by painful years of recovery under Gov.-elect Andrew Cuomo.
Forecasts include deficits of more than $40 billion over the next three years as income, sales and business taxes slowly rise to pre-recession levels. For New Yorkers, that could still result in reduced state services, layoffs of government and school employees, and higher taxes.
The comptroller's view of the current fiscal year is more bleak than that of lawmakers and Paterson, who soon will have to make the cuts in spending to address the deficit.
"We're not convinced that revenue will increase at the rate that they believe it will increase at," said Thomas Nitido, a deputy comptroller.
Paterson Budget Director Robert Megna said he doesn't agree with the comptroller's estimate.
Paterson is expected to announce a special session for the Assembly and Senate in coming weeks with an agenda to cut spending to address a $315 million deficit. That could include cutting school aid midyear, a rare and disruptive action that can trigger higher local property taxes.
The deficit-reduction session is expected to again draw fire from special interests protecting that funding. Public worker unions already face Paterson's plan to layoff 898 state workers by Dec. 31.
On Monday, the Public Employees Federation announced an advertising campaign in newspapers, on TV and over the Internet opposing layoffs and cuts. It's a tactic used by unions that has undermined governors trying to cut and encouraged lawmakers to oppose cuts.
"PEF recognizes the seriousness of the current economic crisis, but Governor David Paterson's plan to lay off nearly 1,000 state employees has the potential to seriously hamper services on which New York taxpayers rely," said union President Kenneth Brynien.
He noted the work force of nearly 200,000 has already been trimmed by thousands of jobs through attrition.
"We cut significantly in the last two to three budgets, but we still have a daunting problem that's facing us," Megna told his counterparts. "I'm sure the governor-elect has his work cut out for him."
In addition to the current $315 million deficit, Megna projects a $9 billion deficit for the 2011-12 fiscal year beginning April 1, a $14.8 billion deficit for 2012-13; and a $17.2 billion deficit for the 2013-14 fiscal year. The gaps are significant even in the massive state budget of over more than $135 billion annually.
Meanwhile, Cuomo was inspecting New York's Tappan Zee Bridge that links Rockland and Westchester counties. State authorities are now planning to either replace the bridge or continue expensive repairs.
"It always comes down to money," Cuomo told reporters. "The answer is not going to be more money, more money, more money."
He said the Tappan Zee typifies New York's problems that require investment despite hard fiscal times. For example, he said 5,000 of the state's 17,000 bridges statewide are deficient and need work.
A Siena College poll on Monday found 57 percent of New Yorkers were somewhat or very optimistic Cuomo will successfully address the state's budget deficit. The poll questioned 802 voters Nov. 8-10 and has a margin of error of plus or minus 3.5 percentage points.
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