A state Division of Budget update on the state’s 2013-14 spending plan that acknowledges an impact of the recently created START-UP NY plan and the restructuring of the Long Island Power Authority.

The report, released Friday evening, found the privatization of LIPA is expected to result in a lower amount of corporation and utilities tax revenue, along with a smaller portion of the 18-a assessment that will be used to regulated the new version of the utility.

At the same time, the program that creates tax-free zones on and near college campuses and some state-owned lands will have an impact as well, the report found.

For the first time, the impact of START UP NY is estimated by the Cuomo administration to be $323 million by the end of March 2017.

“Qualifying businesses operating within such zones are exempt from taxation under the corporation, corporation franchise, personal income, MTA mobility, sales and use and real estate transfer taxes,” the report found. “Qualifying new employees are exempt from New York State and New York City personal income tax on wages earned while working in a tax‐free zone.”

The Cuomo administration had insisted the impact of the tax-free plan, which is aimed at drawing new businesses to the state, will generate economic activity around the state and not have a negative impact on revenue.

The coming 2014-15 budget deficit, meanwhile, was revised to under $2 billion to $1.74 billion. Gaps are expected to increase slightly from previous projections, however. Deficits in 2015-16 and 2016-17 are exepcted to increase slightly.

The state beneifted from $260 million in settlements through the Department of Financial Services.

Bank of Tokyo‐Mitsubishi UFJ paid the state $250 million after it was found to have moved billions of dollars through the state that had been come from Iran, Sudan, and Myanmar.

Deloitte Financial Advisory Services, which had worked as a consultant for Standard Charter the British bank found to have laundered money through Iran, was fined $10 million by DFS.

Fy 2014 First Quarterly Update by Nick Reisman