Comptroller Tom DiNapoli on Monday summed up his thoughts on the looming budget troubles in one word.
"Concern," he said. "It certainly confirms what we've been saying, that tax collections are coming in lower than anticipated. So we see continued lowering of projections, and we're still falling short."
Revenue from taxes is shrinking, coming in lower than budget officials expected. Nevertheless, the driver of the state's economy -- Wall Street -- is doing well. DiNapoli says the problem is an uneven economic recovery.
"It's a different picture depending on which part of the state that you're in," DiNapoli said. "So while the downstate counties are doing relatively well, we have upstate counties that are not."
New York's budget deficit heading into the new year is as high as $4.6 billion if spending continues at current level. And even if spending is capped at a 2 percent increase, the deficit is $1.7 billion. That means less money is going to be available next year.
"The Legislature and the governor are going to have to make some very tough decisions on spending as we head into the budget cycle next year," DiNapoli said. "I urge everyone to lower their expectations on how much money is going to be available to spend."
Meanwhile, New York could be impacted in the future if Congress ends deductions for state and local taxes. While upper income earners could take the biggest hit, there would still be problems for the middle class.
"I really think the concern is what's happening to the middle class in all of this," DiNapoli said. "That's why you have many Republicans in our own state who are saying this is not appropriate."
Five Republicans from New York voted against the tax bill in the House of Representatives. Congressman Chris Collins wasn't one of them, saying the state needs to get its own fiscal house in order.
"We're living in the highest taxed, most regulated, least business friendly state than any other in the nation -- a population continuing to decline," Collins said.
Still, New York Republicans are worried. Congressman Peter King of Long Island on Sunday urged President Donald Trump to intervene and keep the deductions intact.