New York Comptroller Thomas DiNapoli offered a mixed assessment of Gov. Andrew Cuomo's proposed budget.
DiNapoli praised it for continuing to control costs and tackling tough issues. However, he also said that the budget is projecting surpluses based on 2% growth in spending but that the budget does not explain how spending will be kept to that level beyond fiscal year 2015.
"Based on [New York] Division of the Budget projections, including all proposed budget changes, the state faces the risk of general fund out-year gaps totaling $1.5 billion in 2015-16, $2.2 billion in 2016-17, and $3.4 billion in 2017-18, if unspecified savings from the 2% spending limit are excluded," staff at DiNapoli's office stated.
"Other risks include uncertainty over revenues from public authority transfers, fund sweeps, and abandoned property transfers, [and] reliance on federal assistance."
DiNapoli said the state's budget process should be reformed so that the governor would present financial plans identifying how out-year gaps will be filled.
DiNapoli said the executive budget projects state-share Medicaid spending to rise by 15% to fiscal year 2018 from fiscal year 2014.
Cuomo's executive budget proposes operating fund spending increase to $92.3 billion in fiscal year 2015 from $90.5 billion in fiscal year 2014.
State debt measured as a percent of personal income is at 5.2%, the office of the governor reports. This is the lowest ratio since the 1960s and it is expected to decline over the next decade.
Total state debt declined to fiscal 2013 from fiscal 2012 and is expected to further decline in the current fiscal year. This is the first time since the 1960s that the state's debt will have declined for two consecutive years.
An accumulated Generally Accepted Accounting Principles-basis deficit of $3.5 billion inherited by the governor has been reduced in three years to less than $750 million, according to the governor's office. It is expected to be eliminated completely in the current fiscal year.
