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What You Need to Know
Staff Accomplishment
July 25, 2023
New York Capitol Brief:
October 13, 2023
NY’s Predicted Budget Deficit
New York’s fiscal landscape is facing a significant challenge, with the State Division of Budget forecasting a budget deficit of $9.1 billion for the upcoming year with increased holes in subsequent years.
Comptroller DiNapoli’s recent report highlights the fiscal predicament, noting that revenues are expected to decline year-over-year in the current fiscal year. At the same time, expenditures are projected to grow at a faster rate. The report underscores the ongoing economic impact of COVID-19, including the struggle to recover all jobs lost during the pandemic. Budget Director Blake Washington has instructed State agencies to submit flat 2024 spending plans with no increases. Governor Hochul has said she is determined to avoid tapping into the reserve funds or raising taxes to bridge the deficit. The Legislature is likely to offer a variety of counter-proposals in an attempt to preserve programs and services. Already, the fiscally conservative Empire Center is advocating for spending cuts, particularly to Medicaid and education aid, while the more liberal Fiscal Policy Institute is calling for the use of reserves and targeted tax increases.
The budget-making process will formally kick off in mid-January with the Governor’s Executive Budget Proposal, followed by Budget hearings, legislative responses, and a final enacted budget due by ...