Gov. Paterson now projects the deficit for the coming year at $8.2 billion, that's up $750 million from the figure he named in his budget. According to the budget division, low tax revenues from the banks are to blame. "We know that big guys typically pay us at the end of January,” said Robert L. Megna, the state budget director, referring to large banks like Goldman Sachs and JPMorgan Chase. “Last week, after the budget came out, they didn’t pay us.” Typical. more ›

Just when you thought developer Bruce Ratner was about to turn the corner in the P.R. war over his proposed $800 million arena for the Nets in Brooklyn, along comes the city’s Independent Budget Office with a big bucket of ice water. A new analysis concludes that "over a 30-year period, the arena would cost the city nearly $40 million more in spending under current budget plans than it will generate in tax revenues (present value, 2009 dollars)." It also estimates that "for the developer, Forest City Ratner Companies, the mix of special government benefits result in total savings of $726 million." more ›