The New York state comptroller’s office released its analysis of the recently enacted record-breaking $220.5 billion state budget passed on April 9th. The state’s coffers this year were bolstered by higher-than-expected tax revenues, as well as federal pandemic aid.
While the State’s financial position currently appears strong, sustaining new recurring commitments over a longer time period may be difficult, as new economic risks emerge, federal funds are spent down, and temporary tax revenues sunset. Bolstering reserve funds is essential for ensuring services New Yorkers rely on can be preserved through economic challenges and fiscal uncertainties, and every opportunity should be taken to maximize deposits to the State’s statutory rainy day reserve funds.