The state should change its fiscal year, save more money and let the public approve any new debt, state Comptroller Thomas DiNapoli said Thursday.

DiNapoli issued those and other recommendations in a report on the state's $131.9 billion budget, which was signed into law April 7. DiNapoli criticized fellow Democrats for negotiating the budget in private and failing to restrain their spending habits.

"This budget falls short of what New York desperately needs. The stimulus and other temporary resources were used as a short-term fix," DiNapoli said.

"There's no reason to hide the fiscal realities. New Yorkers can handle the truth," DiNapoli added.

DiNapoli noted that the state is projected to spend $131.9 billion this fiscal year, $1.4 billion more than it will take in with taxes, grants and other income.

In early 2012, when federal stimulus funds run out, the state is expected to spend $9 billion more than its income.

"Tough decisions on spending have been postponed," DiNapoli warned.

DiNapoli's report makes a range of suggestions, including:

• Requiring two-year budgets instead of making the state create a new budget every year.
• Beginning the state's fiscal year on July 1 instead of April 1 to allow more time to review tax returns and better project incoming revenue.
• Raise the maximum amounts the state can save in its "rainy day" fund, from 3 percent of general fund spending to 5 percent of spending. The state has about $1.2 billion in the fund right now.
• Enact a new, more rigid cap on debt.
• Require voter approval to take on new debt.

The Business Council of New York State Inc., the state's largest business lobby, lauded DiNapoli's recommendations.

"The budget fails New York taxpayers by spending too much and taxing too much. It is the worst budget in state history," said Ken Adams, president and CEO of the Albany-based lobby. "New York must find a way to control its spending and reform the budget process. Our economy simply cannot afford the continued excesses in spending and huge deficits created by this budget."

The full report can be found at www.osc.state.ny.us.