Reports

The devastating job losses caused by the COVID-19 pandemic led to a record number of unemployment insurance (UI) claims in New York, necessitating borrowing from the federal government beginning in May 2020. Two years later, the State’s UI debt has remained stubbornly high despite steady employment gains and state tax rates that have already increased to maximum permissible levels. Absent federal or state significant action, interest costs will mount and employers federal taxes will also grow.

For State Fiscal Year (SFY) 2021-22, agencies paid vendors $1,005,376 in interest, a decrease of $445,842 (approximately 31 percent) from SFY 2020-21.

Of the total contracts reported by State agencies in 2021, 58 percent were processed after their start or renewal dates, a decrease from 78 percent in 2020.

The New York State Minority- and Women-Owned Business Enterprise (MWBE) Asset Management and Financial Institution Strategy (Chapter 171, Laws of 2010) was enacted to codify and replicate best practices for providing MWBEs that are asset managers, investment banks and financial and professional service providers with the opportunity to offer services to fiduciary-controlled entities established by New York State law.

The Comptroller is responsible for ensuring State and local governments use taxpayer money effectively and efficiently, including through the review of contracts. This year’s State budget allowed at least $11 billion in spending without a competitive process or the benefit of an OSC review. OSC’s oversight adds tremendous value, and contract review was completed in an average of just 5.3 days in 2021. A bill to statutorily restore certain OSC oversight authority for billions of dollars in contract spending should be enacted in this legislative session.

The personal income tax (PIT) is the single largest source of revenue for the State of New York, accounting for two out of every three tax dollars collected by the State. Accordingly, the State’s overall financial health and its ability to sustain investments in public services is linked to PIT collections. This report describes recent trends in personal income taxpayer filings between 2015 and 2019. 

Historic federal aid and better-than-expected revenues allowed for a steep increase in spending in the Enacted Budget. However, sustaining new recurring commitments over a longer time period may be difficult as new economic risks emerge, federal funding is 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.

Median earnings for full-time working women in New York were 86 cents for every dollar earned by men in 2019, an annual wage gap of $8,821, as reported by the U.S. Census Bureau. While New York women earn more dollars relative to men than in most other states, women's median earnings continue to lag across occupational groups and other categories.

Historic relief funds from the federal government, provided in response to the COVID-19 pandemic, boosted New York’s per capita balance of payments from Washington from second-to-last in federal fiscal year 2019 to 40th in 2020. During this period, New York received $1.59 for every tax dollar paid to Washington, an increase from 91 cents from the prior year, but still below the national average of $1.92. 

The number of jobs influenced by the green economy in New York exceeded one million in 2019 and 2020. New York’s efforts to promote sustainability not only encourage the creation of new jobs related to clean energy and energy efficiency, but they can also affect employment more broadly, requiring new skills in existing occupations and increasing demand for others. The State must fund educational and workforce development programs to grow the green economy and help bolster New York’s pandemic recovery.

Although the Division of the Budget forecasts in the State Fiscal Year 2022-23 Executive Budget that the budget will remain in balance for the next five years, the direction of the pandemic, inflation, and supply chain issues all remain risks to the state’s economic recovery and financial plan. The budget also proposes billions of dollars in spending that would bypass critical oversight if enacted.

Update: Supplemental Report on the State Fiscal Year 2022-23 Executive Budget (As Amended by the Governor)

While the Dedicated Highway and Bridge Trust Fund was intended to provide a reliable, dedicated stream of funding for the State’s transportation projects, it long ago ceased to serve this purpose and is now largely devoted to repaying past borrowings and supporting current operating costs. As a result, vital highway and bridge projects are at increased risk because the State continues to use these limited resources primarily for purposes other than financing current capital projects.

This annual report summarizes the results of all the State agency and public authority audit reports issued by the Office of the State Comptroller from October 1, 2020 through September 30, 2021.

This listing includes all final audit reports related to State agency and public authority operations issued during the five-year period from October 1, 2015 through September 30, 2020, and is a companion to the 2020–2021 Annual Report on Audits.

New York State’s prison population declined by half from March 2008 to March 2021. However, the number of older incarcerated individuals increased marginally over the same period. This report examines the factors contributing to the population change and the medical cost implications.

A look back at some of the major accomplishments of the Office of the New York State Comptroller in 2021, including achieving a record 33.5% investment return for the State pension fund, protecting the pension fund by divesting from coal and oil sands companies while investing in sustainable and low-carbon opportunities, tracking employment and economic trends while closely monitoring pandemic relief programs, returning $348 million in lost money to rightful owners, and more. 

Monthly enrollment in the Medicaid program has grown by about 5 percent per year since January 2007, and exceeded 7 million for the first time in February 2021. This report discusses the factors that have driven growth in Medicaid enrollment and the resulting cost impacts, the relationship between Medicaid enrollment and economic indicators, and the cost implications if the Division of the Budget's anticipated enrollment reductions fail to materialize.

The Office of the State Comptroller received 16,356 contract transactions, including both new contracts and contract amendments, valued at $235 billion in the calendar year 2020. The average time from agency contract submission to final sign-off was 5.8 days.

Businesses in New York were more severely impacted by the COVID-19 pandemic in the spring of 2020 than in the rest of the nation, and the negative impacts on small businesses with less than 500 employees persist. In addition, small businesses report facing new challenges with hiring difficulties and with supply chains. Nevertheless, one in five small businesses reported a return to normal operations in October 2021, there have been significant improvements in several sectors, and applications for new businesses are surging, which bodes well for the economic recovery.

The Office of the State Comptroller prepares this report to enhance public discussion of the State's economy and budget. OSC estimates the State’s tax revenues will grow 22 percent in SFY 2021-22, 4.7 percent SFY 2022-23, and 3.2 percent in SFY 2023-24.