New York’s fiscal 2012-13 executive budget continues the progress made in the currently enacted budget to close an immediate projected gap as well as narrow out-year shortfalls, according to an analysis by state Comptroller Thomas DiNapoli.

The greatest threat to maintaining a balanced budget, he said, is the sluggish economic recovery that could lead to lower-than-expected tax collections.

The proposed budget also includes proposals that would give the governor, Andrew Cuomo, greater powers that would reduce long-established checks and balances, according to DeNapoli. He also noted that its Tier VI pension proposal does not provide for the costs of implementation.

“With the current year’s budget, the governor and Legislature made progress toward aligning state spending with revenue on a recurring basis,” DiNapoli said. “This year’s executive budget proposal continues that trend and substantially reduces out-year deficits.”

“However, this progress should not be made at the expense of transparency, appropriate checks and balances, and the realistic and necessary safeguarding of public dollars,” he added.

The state’s general obligation bonds are rated AA by Standard & Poor’s and Fitch Ratings, and Aa2 by Moody’s Investors Service.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.