By Karen DeWitt
http://stream.publicbroadcasting.net/production/mp3/wrvo/local-wrvo-887229.mp3
Albany, NY – While the news of the higher than expected bonus payouts on Wall
Street may incur the wrath of the citizenry, it does mean good news
for the New York State budget, which relies heavily on financial
industry revenues to pay for services.
State Comptroller Tom DiNapoli, recognized this paradox when he said
that as most New Yorkers struggled economically, Wall Street has had
an unexpectedly rapid recovery, partly due to the tax payer funded
bail out of major banks, many of which were formerly brokerage
houses.
"This is obviously still a bitter pill for many New Yorkers," said
DiNapoli.
The $20.3 billion dollars distributed in bonuses represents a 17%
increase from last year, though the bonus numbers are down around one
third from two years ago.
DiNapoli says despite the increase in tax revenue income, he still
recommends that the governor and legislature remain cautious about
future spending.
The comptroller earlier this week issued a report that finds the
state's current budget could be as much as $2 billion dollars out of
balance. He says most tax revenues are down. Sales tax collections
have slipped by 6%, an historic drop.
DiNapoli says the state is also counting on a number of revenue
sources that may not materialize, including $300 million dollars from
expanded gambling at Aqueduct. AEG, the company awarded the contract
for the slot-like machines, is currently under investigation, and the
Speaker of the State Assembly has said he won't agree to the deal
until the probes conclude.
The state is also relying on a $200 million dollar transfer from the
Battery Park City Authority, but New York City has yet to OK that
arrangement. And the Comptroller says a tax amnesty program
originally estimated to collect $250 million dollars has only reaped
$2 million dollars so far.
A spokesman for Governor Paterson issued a blistering rebuke to that
news, saying the Comptroller should be offering solutions, not
criticism, and should stick to overseeing the pension fund, which the
spokesman accused DiNapoli of mismanaging.
Comptroller DiNapoli, who, like Paterson, is a Democrat, avoided a
direct response to the governor's attack, but pointed to a recent
report by the Pew Research Center, which found New York State has one
of the best managed pension funds in the nation.
"I think that kind of objective analysis is probably a better frame
of reference," said DiNapoli, who said it's approaching the "silly
season" in politics.
"I think people expect the State Comptroller, of all the offices, to
be as much removed from that as possible," DiNapoli said.