Reports

For the fourth year in a row, federal pandemic relief funds resulted in New York having a positive balance of payments with Washington. For every tax dollar New York paid to Washington in Federal Fiscal Year 2023, the State received $1.06 in return; the national average was $1.32. New York’s balance of payments was $912 per capita, ranking New York 42nd among states. This report is the ninth in a series by the Office of the State Comptroller that examines the flow of funds between the federal government and the states.

Interactive Map | Excel file with supporting data

The Federal Tax Cuts and Jobs Act (TCJA) included over 100 provisions amending the federal taxation of individuals and businesses beginning in tax year 2018. Should the provisions of the TCJA sunset with no additional changes made to the federal tax code, there would be little impact on New York State tax collections due to the decoupling that occurred in State Fiscal Year 2018-19. Whatever the outcome relating to the extension of the TCJA as well the inclusion of any new proposals, New York taxpayers will be impacted.

New York City increased its expectations for its surplus in fiscal year (FY) 2025 to $2.34 billion, largely as a result of stronger tax revenue projections and a reduction in the cost of providing services to asylum seekers, which will help balance its $116.9 billion FY 2026 budget. With escalating uncertainty in the federal funding environment — which could lead the State to make choices to balance its budget that pressure local government finances — preparation and transparency remain paramount to navigate the future.

This report examines the ways that funding received by local governments – from federal stimulus programs – as well as volatile annual state and local revenue sources – can impact local budgeting. The temporary nature of the federal stimulus funds in combination with state aid that has not kept pace with inflation, sales tax growth that has returned to lower pre-pandemic levels, and flat property tax revenue growth can put local governments closer to the edge of the fiscal cliff if not carefully managed.

This assessment of the proposed Executive Budget identifies risks and concerns that underscore the importance of taking action to address the trajectory of State spending and improve the State’s structural imbalance, while continuing to bolster the State’s rainy day reserves. After several years of benefitting from extraordinary pandemic relief funding, the federal-state relationship may be changing in ways that could result in cuts to key State programs, especially in health and social services. The need to strengthen the State’s fiscal position has never been greater.

This report highlights Fiscal Stress Monitoring System (FSMS) results for school districts that reported for school fiscal year (SY) 2023-24, which ended on June 30, 2024. Of the 670 districts scored, 22, or 3.3 percent, received a fiscal stress designation. This is six more than in SY 2022-23. The report also includes a look at districts that have experienced chronic fiscal stress over the twelve years since FSMS began and a brief analysis of the system’s companion set of environmental indicators. The environmental indicators show an increase in districts experiencing high teacher turnover and a decrease in those with a declining property tax base.

New York City’s finances have stabilized amid declining costs for asylum seekers and strong revenue, largely from growth in business and property tax collections. The City must balance fiscal management with its operational needs to ensure it can continue to encourage employment and business growth, enhancing its economic and tax revenue base.

New York City’s government workforce reached more than 300,000 employees in June of 2024, the first year-over-year increase since the COVID-19 pandemic. Still, some City agencies remain understaffed, resulting in critical services being impacted. The operational complexity in delivering these services highlights the critical need for stakeholders (management and the public) to have access to relevant data to evaluate the performance of a given agency or program.

New York City Health + Hospitals (H+H) spent $168 million more than projected on temporary staff, despite hiring over 1,660 new nurses in city fiscal year 2024. Nurse employment trends have improved since the end of the public health emergency, especially in New York City and particularly at H+H. In order to manage staffing pressures and service demand, H+H must continue to balance hiring of new staff to execute on its strategic and financial plan.

The Office of the State Comptroller prepares this report as part of the "Quick Start" process established in the State Finance Law. The report includes revenue and spending projections through SFY 2026-27.

After a brief period of financial stability secured by an infusion of State funds last year, the Metropolitan Transportation Authority (MTA) now faces growing fiscal uncertainties and risks that create projected budget gaps. Those gaps could grow much wider if various budget risks that the MTA has identified come to pass. A faster-than-expected return of ridership remains one of the key means for improving the fiscal stability of the system and highlighting the importance of continued investment in the assets of the system.

The Annual Comprehensive Financial Report for the State of New York for the fiscal year ended March 31, 2024.

The Annual Comprehensive Financial Report for the New York State and Local Retirement System (the System or NYSLRS) for the fiscal year ended March 31, 2024.

The MTA must find billions in new funds even as the State tries to resolve the $15 billion gap in revenue created by the pause on congestion pricing. This report lays out possible sources to fund the MTA’s substantial capital needs and emphasizes areas of capital work expected to receive funding in its next capital program.

New York City’s finances continue to benefit from better-than-projected revenues and savings generated through initiatives launched in response to its financial challenges, but the continued influx of asylum seekers, elevated demand for City programs and a declining surplus demand preparation to navigate future uncertainty.

As required by Section 196 of the Navigation Law, the Comptroller prepares an annual report to the State Legislature and the Governor. The report includes: a description of the costs and damages paid by and recovered for the Fund; the monies spent pursuant to Section 186 (including amounts spent for oil spill prevention, training activities and equipment purchased), and the economic and environmental impacts on the State.

New York’s Clean Energy Fund (CEF), established in 2016 to help New York reach its clean energy goals, has made good progress on reaching its goals for distributed solar capacity and leveraged funds, but is behind in meeting its energy efficiency targets for 2025. Since 2016, the CEF spent $3.4 billion through 2023 and has achieved 45% of its total efficiency goals.

New York City’s contract spending (excluding capital projects) has grown significantly in recent years, rising to $24.3 billion in fiscal year (FY) 2023, an increase of nearly $7 billion from FY 2019, representing an outsized share (41%) of total citywide operating spending growth in this period. Total contract spending for goods and services represented nearly 22% of operating spending in FY 2023, compared to 16% in FY 2010.

New York’s financial outlook is in a relatively stable position, but continues to have a structural budget deficit, with a cumulative three-year budget gap of $13.9 billion forecasted by the Division of the Budget. Action is needed to align projected state spending with revenues and address factors that challenge the state’s finances, economic competitiveness, and ability to offer services effectively over the long term. While economic conditions continue to remain favorable, policymakers have an opportunity to take further steps to improve the State’s structural financial position, and to improve the performance of critical State programs.

With the loss of $15 billion in congestion pricing revenue, the MTA has to reprioritize its 2020-2024 Capital Program. This report identifies over $21 billion in projects that potentially relied on congestion pricing revenue and are under review and suggests the Authority prioritize keeping the system in a state of good repair.