State Fiscal Year (SFY) 2020-21 will long be remembered for the disruption caused by the COVID-19 pandemic and for the resilience demonstrated by New Yorkers in responding to the multitude of challenges. The impact of the economic shutdown on the State’s financial plan was sudden and dramatic; ultimately, historic federal relief funding and higher-than-anticipated tax collections stabilized the State’s financial footing. This Financial Condition Report can help New Yorkers better understand the impacts of the COVID-19 pandemic, the ongoing risks and challenges, and opportunities for changes to improve the long-term outlook for State finances.

Federal aid provided nearly 41 percent of the State’s All Funds receipts in SFY 2020-21. Federal funding supports health coverage for more than 8 million New Yorkers, and plays essential roles in programs including K-12 education, mass transit and social assistance. Critically, the financial plan depends on more than $27 billion of COVID-19 stimulus funding authorized by the federal government to continue supporting COVID-19 response costs, economic support, and stabilization of State finances over the life of the financial plan. In SFY 2020-21, State tax receipts performed better than initially forecast, but remained more than $500 million lower than the prior year.

This report provides information and analysis across the full spectrum of New York State government, starting with key fiscal indicators for revenue, spending, capital investments and debt. It highlights major issues in programmatic areas ranging from public health to public safety, energy and the environment, K-12 and higher education, transportation and more.

We remain in a period of uncertainty and ongoing risk due to the persistence of COVID-19. This report provides a factual assessment of the State of New York’s financial condition for the first of what will be multiple years affected by COVID-19. My hope is that it will inform all New Yorkers as well as the ongoing decision-making regarding the best path forward for New York State.

Thomas P. DiNapoli
State Comptroller