Governor Hochul's administration is telling state agencies not to ask for a budget increase for the next fiscal year.
The state is facing a projected $9 billion budget shortfall next year, and more than $13 billion shortfalls in each of the following two years.
In a letter to state agencies, Budget Director Blake Washington says revenue forecasts are being revised downward. He blames tighter monetary policy, the end of federal pandemic aid, and a slowdown in tax revenue from market activity.
State agencies have an October 11 deadline to submit their budget requests.