ALBANY, N.Y. — State Comptroller Thomas DiNapoli warned of increasing instability in New York’s fiscal outlook, citing a growing gap between spending and revenue.
A new report from DiNapoli’s office showed state spending is expected to rise to $277 billion for the next fiscal year, outpacing revenues by more than $7 billion. The analysis also projected a cumulative budget gap of more than $31 billion in the next three years, with healthcare and education driving much of the increase.
“The state’s finances remain highly exposed to federal actions and potential economic downturns,” DiNapoli said. “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.”
An increase in local government fiscal needs is another factor towards the expected gap.
Full report on the enacted budget and financial plan
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