Sales Tax Revenues Down Significantly In NY Means More Budget Woes

State sales tax revenues are down 10% so far, which means that the state's FY 2009-2010 budget is already out of whack, and will continue to face shortfalls as the local economy shows no sign of rebounding. The problems are bad all over the state, but upstate areas are especially hard hit.

Tourism money isn't happening either, as luxury goods are off in a big way particularly at those retail stores that have a big foreign following.

The revenues have to be made up somewhere in the state budget, and cutting spending isn't going to happen, despite the fact that the FY 2009-2010 budget is billions more than last year's budget. That includes billions in new taxes imposed, which bring the state budget to an eye popping $132 billion in spending. Revenues aren't supporting that figure. In fact, the revenue forecasts could hardly support the prior year's budget.

Much of the state's budget increase is based on new taxes and fees levied in the hope that it would raise billions in revenues. Watch those revenues fall far short of their mark, making the state's dire fiscal situation all the worse.

Meanwhile, part of the federal stimulus will come to New York in the form of spending $1 million on signage for projects that will use federal ARRA funds. More to the point, the state is shelling out $5,000 per sign at a time when other states have either outright refused to make them, or are paying $500 per sign.

It's the New York way. Why spend on extraneous items when you can lavishly spend on extraneous items.