New York's
The enacted $150.2 billion budget includes more than $7.4 billion in new and increased authorizations for state-supported borrowing, roughly 40% higher than Gov. Andrew Cuomo's initial spending plan proposal and 6.4% above previous levels, DiNapoli said in
The Democratic comptroller expressed concern that the new debt would be issued on behalf of the state by its public authorities, with the "backdoor borrowing" getting around the state constitution’s requirement that public debt be approved by voters. Public authority debt is "subject to fewer controls" with issuance, structure and retirement than voter-approved state general obligation bonds, DiNapoli said.
$1.4 billion for hazardous waste remediation and other environmental projects as well as $1 billion for health care facility restructuring. The budget directs $5.4 billion in bank settlement funds toward initiatives like replacing the Tappan Zee Bridge "that could have been used to offset new debt," DiNapoli’s report said.
"Areas of concern include the adequacy of statutory language to ensure settlement monies will be spent as intended," said DiNapoli " The budget also includes billions of dollars in new debt and lump sum appropriations for the executive and legislature to use at their discretion, leading to questions about transparency and accountability.”
DiNapoli did praise the budget for authorizing higher deposits into the state's Rainy Day Reserve Fund, which he said will provide greater assurance that monies are available "when truly needed." However, DiNapoli expressed concerns about a newly-established Dedicated Infrastructure Investment Fund, which was created to utilize settlement dollars for capital investments or other one-time purposes, saying "broad statutory language" means is no concrete way to track how these monies are being spent.
"A complete picture would show that state debt has actually declined for three consecutive years for the first time since at least World War II, and that our debt to personal income ratio is at its lowest level in decades," said Morris Peters, spokesman for the New York State Division of the Budget.
