New York

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New York

Rank: 12 (Previous Rank: 6)
Budget gap (as a % of the total budget): 11.40%
Total gap: $6.4 billion
Gap before budget was approved: $4.9 billion
Additional midyear gap: $1.7 billion

Governor David Paterson this week unveiled a proposal for $4 billion in taxes and fees, including a new tax on soft drinks and luxury items and $9 billion in cuts to education, Medicaid, and other programs. He is trying to close an expected deficit for the current fiscal year and the following fiscal year that has grown to $15 billion. The state previously made cuts to the health insurance program for low-income families, froze hiring, and enacted tax and fee increases to close a $630 million shortfall before this year's budget was approved.