New York State's fiscal position has improved, but increasing budget challenges loom with revenues expected to slow, according to a new
DiNapoli conducted an analysis of Gov. Andrew Cuomo's $156 billion budget and in his report, released Wednesday, expressed concerns about the plan relying too heavily on temporary revenue streams. The comptroller, a Democrat, said the spending plan incorporates growth in tax collections and more than $8 billion the Empire State received in monetary settlements last year. He added however that the Division of Budget projects growth in tax receipts will slow from 5.7% this year to 3.4% in fiscal 2017 with a drop in settlement fund revenue contributing to the fund balance being lowered to $3.2 billion from $7.3 billion two years earlier.
"The state's fiscal position is much improved because of actions by the Governor and the Legislature, legal settlements and robust tax revenues this year," said DiNapoli in a statement. "Yet structural budget challenges remain, and we cannot count on extraordinary one-time windfalls to pay our bills down the road. The Executive Budget reflects better times and proposes new investments in key areas such as infrastructure, but greater clarity is needed on how the state will pay for it all."
DiNapoli's office estimates that DOB projections of receipts and disbursements could lead to a budget gap of $1.1 billion in the 2018 fiscal year, $3.1 billion in 2019 and $3.6 billion by 2020. The comptroller also notes that the budget projects that state-supported debt outstanding will increase by nearly $10 billion, or 19.6%, over five years to $60.8 billion in fiscal 2021.
Moody's Investors Service rates New York bonds at Aa1. The state is rated AA-plus by Standard & Poor's, Fitch Ratings and Kroll Bond Rating Agency.
