The State collects and spends more than $220 billion annually on an expansive portfolio of services to benefit New Yorkers, ranging from providing health care coverage for 8.5 million people to supporting the educational needs of K-12 and University students. This budget is funded by some of the highest taxes in the nation.
The State’s fiscal health remains solid despite a slowdown in local, regional and national economic growth. Revenues have exceeded expectations, partially due to a recent voter approval of a new income tax surcharge on high-income residents. However, a large portion of the increased revenues are earmarked for specific projects and are not available for general spending.
In the upcoming legislative session, leaders of both houses of the State Legislature and the Governor will negotiate a budget bill. Often, these negotiations are contentious, with some high-value and/or sensitive proposals not making it into the final budget. Once the State budget is finalized, it must be enacted by April 1 to allow for payment of the State workforce and the funding of ongoing programs.
The State’s Financial Plan is statutorily required to be published on a regular basis, detailing the budget’s planned total and detailed receipts and disbursements for the current year and upcoming year. This publication serves as a key component in ensuring transparency and accountability to the public. It is also a critical tool in the State’s fiscal health assessment and in planning for future fiscal conditions.