NEW YORK, US (Reuters) - New York state's three-year deficit might top the governor's forecast by US$3.6 billion, hitting US$27.5 billion, as income and sales taxes continue to lag, the state comptroller said in a report on Thursday.

The comptroller, Thomas DiNapoli, said although there were signs of an economic turnaround, tax collections are still falling. The personal income tax accounts for 60 percent of the state's tax base and the sales tax accounts for 25 percent.

"Albany has played roulette with taxpayers' money for too long," DiNapoli, a Democrat, said in the report. He called the state's budget crisis the worst in recent history.

In addition, the state's Budget Division warned on Thursday thatthere is little chance of a sudden reversal in fortune of the state's strained finances.

"It's clear that there should be little optimism that an 11th-hour surge in Wall Street revenue will remove the need for tough choices proposed in Governor Paterson's deficit budget plan," the

Budget Division said in a daily comment. Wall Street accounts for one-fifth of the state's tax revenues.

The Budget Division noted that the financial industry is going through a "fundamental restructuring," which could clip bonuses and force banks and brokerages to pay out more bonuses in stock, which often delays the tax bill.

Democratic Governor David Paterson has proposed cutting US$5 billion over two years, and urged the Legislature to return to session on Nov. 10 to take up his plan.

Paterson and both chambers of the Legislature must issue their own revenue estimates and if they cannot reach a compromise, turn to the comptroller's predictions.

A spokesman for the state Senate, which the Democrats narrowly control, had no immediate comment. Nevertheless, the Democratic-led Assembly issued its economic predictions on Thursday, which clashed with Paterson's forecasts in a several areas.

For example, the lower chamber's estimates were US$3.7 billion below the forecasts used in the current budget, Speaker Sheldon Silver said in a statement.

But tax revenues for the new budget that starts on April 1 should hop almost 10 percent to US$62.8 billion, he said. That is about US$1 billion more than Paterson forecast, largely because the Assembly sees income tax and business tax revenues rising more sharply.

Paterson and the Assembly also clashed on spending forecasts for Medicaid, the state-federal health plan for the poor, disabled and elderly. This program will cost US$608 million less than Paterson predicts in the next budget, Silver said.