The deteriorating economy has taken its toll on New York and has now caused Gov. Eliot Spitzer to announce that he will scale back his proposed 2008-09 Fiscal Budget [1].  The New York Times [2] reports that just weeks after the governor presented his proposal he is lowering projections for tax revenue by $384 million and is therefore cutting spending on a variety of areas, including the environment.

After promising a 20 percent increase in funding to the Environmental Protection Agency, Spitzer's new spending cuts include dipping into the EPA's funding more than had been expected.  The governor also plans to take about $25 million that was set aside for environmental programs and use it instead for general spending.

The new projections may be an indicator for long-term problems and budget director, Laura L. Anglin, has already stated that she did not know whether the administration might have to cut back further later in the year.