New York State Debt on Decline

New York State debt is projected to decline for a fifth straight year at the end of the current budget cycle, Gov. Andrew Cuomo said in his new spending plan proposal.

Cuomo's $153 billion executive budget plan released last week highlighted that New York's outstanding debt dropped for four straight years from 2013 to 2016 and is on track to dip a fifth consecutive year for the 2017 fiscal period that ends March 31. Morris Peters, a spokesman for the state Division of Budget, said in a statement that debt will have fallen from $55.7 billion to $50.8 billion during the five-year period marking "the first time in modern history that New York has achieved this result."

Peters noted that New York's debt measured as a percent of personal income has fallen from 5.9% in fiscal 2011 to 4.2% in 2017. He said that is "the most favorable debt to income ratio since the 1960s – and is expected to remain relatively constant over the plan period, even as the state makes targeted capital investments for housing, health care, transportation, and economic development."

Since Cuomo was elected governor, debt service costs have ranged from $5.6 billion in 2011 to an estimated $6 billion for 2017, a "stable" 0.4% growth that is below inflation, according to Peters. He said debt service growth from 2011 to 2022 is projected at 2.3%.

New York is rated Aa1 by Moody's Investors Service and AA-plus by S&P Global Ratings, Fitch Ratings and Kroll Bond Rating Agency.