"The state budget makes important investments in education and health care, including mental health care, and provides significant, recurring funding to the MTA that will help close budget gaps. The Governor has stated that reserves will equal 15% of State Operating Funds, consistent with recommendations I have long advocated. The budget also makes statutory changes that increase the allowable deposits and balances of the state's rainy day reserves. The state should put this authority to use by relying more on statutory, rather than informal, reserves. This will help New York catch up with other states in preparing for economic and budgetary risks.
"With an end to federal pandemic aid approaching and the possibility of an economic downturn, it is unclear how recurring obligations will match recurring revenue in the years ahead, which could mean outyear budget gaps that put future funding of critical programs in jeopardy. There is still too much spending through lump sums without details, and the budget still lacks much needed transparency. Provisions were included that appear to exempt approximately $5 billion from Comptroller oversight. There is also a significant increase in capital projects funding which will place more burden on the state’s remaining debt capacity and New York's already high debt levels.
"My office will review the final enacted budget and release an analysis in the coming weeks."
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