NYS Arts Update: Budget Issues Ahead

There is a $2.1 billion hole in the current NYS budget and word has it that the state will have a 'negative cash flow' around November!!The $2.1 billion shortfall in NYS's budget is a result of plummeting sales and income tax receipts, according to the Division of the Budget. In response, the Governor has said that further action is needed to control spending. Sound familiar? Expect this to be the precursor to mid-year budget cuts. Again.We anticipate that the Legislature will convene in SEPTEMBER to discuss budget amendments (read "cuts") to the current State budget.

WHAT CAN WE DO? Start setting up appointments NOW to meet with your legislators at home right after Labor Day. Discuss the impact of the arts in your community. You know the drill: letters, brochures, stories that tug at the heart and at the economic epicenter of our communities. Need your legislator's contact information?

NYS ARTS will begin our online campaigns after Labor Day....so watch your inbox for action items in our Online Advocacy Center.

HERE IS THE BACK STORY
Although lawmakers cut more than $17 billion to produce the current FY 09-10 $131.8 billion NYS budget, it appears clear that new spending cuts-or new revenue-will be needed.

New revenue is not happening since: a)Income tax collections already dropped 35% in the first quarter of the 2009-10 fiscal year. The drop was $584 million more than had been projected in May; b) Sales tax collections fell 6%. That was $159 million less than expected; c) Wages across the state are projected to fall 4.8% in 2009, the largest drop ever recorded. This will produce a ripple effect that will affect all of the state's revenue sources now and over the next four years; d) Other reductions and increased public-assistance costs have contributed to the gap.

And these are all first quarter reports. One must assume that the second quarter reports will look gloomier.

The budget deficit is projected to grow to $4.6 billion in 2010-11. This is an increase of $2.2 billion from the estimate in May. It is expected to reach a cumulative $38.2 billion over the next four years. And the state's general fund may be in negative cash flow by November or December, requiring it to borrow from other state funds.


And here is the latest salvo:As Voter Disgust With Albany Rises, So Do Calls for a New Constitution (NY Times)

Now in the weeks since a partisan power struggle in the State Senate brought New York's government to new heights of chaos, a growing chorus is calling for a more radical approach: a constitutional convention to rewrite the state's very political DNA.
Read more here.