ALBANY, N.Y. \u2014 State Comptroller Thomas DiNapoli warned of increasing instability in New York\u2019s fiscal outlook, citing a growing gap between spending and revenue.<\/p>\n
A new report from DiNapoli\u2019s 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.<\/p>\n
\u201cThe state\u2019s finances remain highly exposed to federal actions and potential economic downturns,\u201d DiNapoli said. \u201cWhile 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\u00a0New\u00a0York\u2019s economy, with downstream impacts on tax revenues and fiscal stability.\u201d<\/p>\n
An increase in local government fiscal needs is another factor towards the expected gap.<\/p>\n