Weaker Economic Forecast and Lower Revenues Are Driving State Budget Gaps
This week, State Comptroller DiNapoli released a report looking at the economic and fiscal issues that are driving up the Division of the Budget’s (DOB) projected budget gaps to a cumulative $36.4 billion over the next four years.
Reasons for the changing financial landscape include lower projected revenue from a weaker economic forecast and stock market volatility, and increases in recurring spending.
“The State’s fiscal outlook has changed considerably over the past year, and significant economic and fiscal risks could further upend the State’s finances,” State Comptroller DiNapoli said. “The Governor and the Legislature prudently increased New York’s reserve funds, but that cannot replace fiscal discipline or be relied upon to plug recurring budget gaps. While there is no quick fix, a proactive approach by State leaders to align recurring revenues with recurring spending could help preserve the economic competitiveness of our State and avoid cuts to critical programs New Yorkers rely on.”
State Comptroller DiNapoli said DOB’s large budget gap projections underscore the importance of building up rainy day reserves and creating criteria for their use.
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State Comptroller DiNapoli is closely monitoring economic conditions and also this week released the June State cash report. State tax receipts were $6.8 billion lower than last year through June 2022, but about $450.8 million above the most recent estimates from DOB.
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Developing Leaders Who Inspire
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Developing future leaders and offering management training is a critical component of how we support our workforce at the Office of the State Comptroller. By making strategic investments, in our most valuable asset – people, the agency cultivates leaders who inspire others to serve with integrity and purpose.
Earlier this week, the agency celebrated the 15th graduating class of its Leadership Development Program. Each graduate took on a challenging work project designed to ultimately benefit New Yorkers and the results were impressive.
Do you know someone looking for a career change? The State Comptroller's Office is hiring people who want to build a career with purpose.
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New York State Comptroller DiNapoli Statement on MTA Finances
State Comptroller DiNapoli said, “The Metropolitan Transportation Authority’s July Financial Plan projects the budget for all five years of the plan period will be balanced on a recurring basis, a remarkable achievement given the dire state of the MTA’s fiscal affairs at the start of the year. Substantial new funding from the State has stabilized the MTA's revenue picture, allowing for budget balance even amid weakness in real estate transaction taxes, a concern my office raised last year.”
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Municipal & School Audits
- Patchogue-Medford Union Free School District – Health Insurance Buyouts
- Village of Solvay – Financial Management
- West Hempstead Union Free School District – Nonstudent Network User Account Controls
- Town of German – Supervisor’s Records and Reports
- Tioga County – Court and Trust
- East Ramapo Central School District – Nonpublic School Transportation
- East Ramapo Central School District – Textbooks Loaned to Nonpublic School Students
ALSO IN THE NEWS THIS WEEK
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Tom DiNapoli @NYSComptroller
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