Wall Street Boom to Reduce New York Budget Deficit by $3 Billion

New York state’s projected budget deficit narrowed by more than $3 billion, as the state expects a record-breaking stock market and improved outlook for Wall Street bonuses.

The state’s improving finances eases some of the pressure on Governor Kathy Hochul to raise taxes to offset federal budget cuts.

The Empire State’s budget gap for the next fiscal year, beginning April 1, narrowed to $4.2 billion from $7.5 billion, when the current budget was enacted in May, according to the state’s Mid-Year Financial Plan Update released Friday.

New York enacted its current budget in the shadow of turmoil over ...