New York State Comptroller Thomas DiNapoli is sounding the fiscal alarm, saying the state could be headed toward increased financial challenges in the future.

A report issued Friday by the Democratic comptroller’s office cited uncertainty in Washington about proposals to cut funding for health care and other programs that boost the state’s bottom line.

DiNapoli also pointed to lower-than-expected tax revenue as a concern. Personal income tax receipts in the first quarter of this fiscal year were $1.7 billion lower than estimates made in February, and $1.5 billion lower than the same period last year.

He says that if the revenue slump continues the state’s out-year budget deficits will increase, putting greater fiscal strain on state operations.

(AP)