New York state’s budget has ballooned to record highs and a new report out from the state’s fiscal watchdog says that comes with growing financial risks.
According to a report released Wednesday by state Comptroller Tom DiNapoli, the $277 billion budget passed by lawmakers this spring shows spending is outpacing revenue, bringing risks to long-term financial stability.
It shows spending continues to grow on programs like healthcare, education and childcare, but total reserves haven’t kept up pace.
That’s compounded by federal cuts, so spending has been increased to keep New Yorkers on the services they need.
“The state’s finances remain highly exposed to federal actions and potential economic downturns,” DiNapoli said in a statement. “While state spending has increased to fund critical programs, most notably healthcare, education and childcare, total reserves have remained flat, which could put these investments at risk in the future. Major national and international developments risk affecting New York’s economy, with downstream impacts on tax revenues and fiscal stability.”
DiNapoli’s report also said that the budget has the state’s reserves remaining flat at approximately $15 billion even as the budget grows.