ALBANY — Some New Yorkers could see a delay in the arrival of their state income-tax refunds if Gov. Paterson decides it’s the best way to make sure the state has enough cash.
The state limits the amount of tax refunds it pays in the first three months of the year to $1.75 billion.
Paterson is considering reducing that to $1.25 billion because the state must roll $1.4 billion into next year’s budget to close this year’s gap.
“The reason we have to consider delaying payments is that the Legislature has been unwilling to work with the governor and fully address our current-year deficit,” said Morgan Hook, a Paterson spokesman.
“We have heard shouting against the governor’s proposals, but not a whisper about where they would make reductions.”
The delay is still under consideration, said Matt Anderson, a spokesman for the state Division of the Budget. But Assembly Minority Leader Brian Kolb (R-Geneva) lambasted even the thought of postponing refund checks.
“It shouldn’t even be considered,” Kolb said.
“This is the people’s money . . . If we have to make other provisions to take care of our state budget, then we need to do that.”
Also under consideration is delaying $880 million in other payments.
No final decision has been made about exactly what to delay. It could be some combination of delayed tax refunds or school aid, health care or other assistance.
But budget officials say it’s certain that something will have to be delayed.
If the $880 million is delayed, the state would still make $20 billion in aid payments in March.
Kolb said Paterson has a tough decision to make, but said any other delayed payments would be preferable to delayed tax refunds.
“His decisions weren’t popular in some corners of the world in holding back money for school aid, and if that’s what he needs to do again, so be it,” Kolb said.
So far the state has paid out $293 million in tax refunds this year.
The state pays about $6 billion in personal income-tax refunds each year.
The state has until June to pay the refunds before they start accruing interest.
Paterson is expected to make a decision in the next few weeks.
The governor is trying to close a budget gap projected to be at about $8.2 billion for the 2010-11 fiscal year with even wider gaps projected for the future.
Paterson has proposed closing the shortfall through spending cuts and a variety of other measures including, increasing taxes and fees on hospital stays, hiking the cigarette tax by a dollar to $3.75 per pack and instituting a 17 percent fat tax on sugary soda. AP, with Ed Robinson