New York Budget Gap Falls to $13.9 Billion With More Tax Revenue

New York is projecting a $13.9 billion budget gap over the next three years, about half the shortfall officials projected last year, as tax collections are expected to rise from higher economic growth and job gains, according to a new report by state Comptroller Thomas DiNapoli.

The multibillion-dollar gap that remains is attributable largely to Medicaid and school aid, the state’s two largest spending areas, which are expected to account for more than half of general fund disbursements by fiscal 2027.

Tax revenue is expected to rise $11.3 billion, or 10.2%, over the three years, driven primarily by ...