DiNapoli: New York's Spending Has Outpaced Inflation

New York’s spending for 2012 is slightly down from the prior year, but since 2008, total spending has outpaced the rate of inflation, according to an annual report on the state’s finances released by Comptroller Thomas DiNapoli on Friday.

The report found that spending for fiscal year ending March 31, 2012 totaled $133.5 billion, a decrease of $1.3 billion from 2011. However, total spending since 2008 increased 15%.

“State policy decisions in the past two years have made budgetary balance a primary goal, but challenges still remain,” DiNapoli said. “The challenge is to build on the progress made and put New York State on a truly sustainable fiscal path.”

The state has borrowed $17.2 billion since 2008, including $3.8 billion in 2012, to partially pay for spending.

In 2012, the state’s spending was $6,859 per person.

“The increase in state spending and decrease in federal spending largely reflect the expiration of a temporary increase in the federal matching rate for Medicaid expenditures approved by Congress,” according to the report.

Medicaid costs rose to $41.4 billion in fiscal year 2012 from $32.8 billion four years ago.

The state spends the most on public health (about $2,660 per person) and on education (about $2,011 per person). Together, the two sectors account for 68% of total state spending.

Other sectors include public welfare, general government, transportation, and public safety.

According to the report, average annual spending growth in all governmental funds is projected to exceed revenue growth through fiscal year 2015-16 (an estimated 3.2% in spending growth compared to 2.7% in receipts growth).

The comptroller has a “strategy for fiscal reform” that includes requiring three-year plans to close any projected budget deficits, increasing reserves, restricting the use of non-recurring resources to non-recurring expenses, and strengthening the capital planning process.

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