Reports

The Enacted Budget for State Fiscal Year (SFY) 2009-10 clearly demonstrates the need for comprehensive fiscal reform.

In recent years, the number of affordable rental apartments in New York City has declined and more households are devoting at least 30 percent of their income toward rent. These factors have exacerbated an already serious lack of affordable housing in New York City.

Just a few years ago, New York City posted record budget surpluses, but now the City is facing its greatest fiscal challenge in decades. Tax revenues are projected to fall by $5 billion over a two-year period as a result of the rapid deterioration in the national and local economies, particularly on Wall Street, the City’s economic engine.

In 2007, nearly $61 billion in total project amounts were reported for all Industrial Development Agencies (IDAs) statewide.

Cash bonuses paid by Wall Street firms to their New York City employees declined by 44 percent in 2008 in response to record losses suffered by the securities industry.

The December 2008 Cash Report indicates that tax collections, while in line with current Financial Plan projections released with the Governor’s proposed budget on December 16, again illustrate a slowing economy.

In response to the ongoing economic crisis in the State and nation, the State Fiscal Year (SFY) 2009-10 Executive Budget recommends $9.5 billion in spending reductions, $3.1 billion in new and higher taxes and fees, and $1.1 billion in nonrecurring resources to close an anticipated $13.7 billion SFY 2009-10 General Fund deficit, including shortfalls expected in the Health Care Reform Act (HCRA) funds.

The financial crisis gripping the nation is the most serious since the Great Depression, and this recession is shaping up to be the worst in the post–World War II era. Events are transforming the Wall Street industry, which accounts for up to 20 percent of State revenue and 12 percent of City tax revenue.

The Hunts Point Food Distribution Center, often referred to as the Hunts Point Market, is the largest food distribution center in the world.

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New York State's economy is interdependent with the major U.S. automobile makers through New York State based auto- related jobs and billions of dollars of debt held by New York based financial institutions.

Wall Street and the nation have been pounded by the fallout from the subprime credit crisis that reached a critical point in July 2007.

Compared with other states, particularly those in the South and West, significantly fewer subprime loans were issued in New York, although there are areas within the State where subprime mortgages were utilized more frequently. However, the number of home foreclosures in New York is increasing as more homeowners are faced with mortgages of all types that they can no longer afford.

The current global financial market crisis could have serious implications for New York’s local governments if access to the credit markets remains constrained. While many long-term implications for local government finances may occur as a result of the broader deterioration in the economy, the credit situation has produced a more immediate impact on liquidity – the ability of local governments to finance their short-term capital operations and cash flow needs. Local governments who are dependent on short-term debt for these purposes could face continued risks.

The Metropolitan Transportation Authority (MTA) operates the largest and most diverse transportation system in the nation, and keeping it secure entails significant challenges.

This Report on Estimated Receipts and Disbursements for State Fiscal Year (SFY) 2008-09 through SFY 2010-11, issued pursuant to Chapter 1 of the Laws of 2007, is intended to facilitate preliminary discussion on the State’s economic condition and the upcoming budget for SFY 2009-10.

The neighborhoods of Washington Heights and Inwood comprise the upper portion of Manhattan. The local economy has expanded modestly in recent years, and while the area is home to several large institutions, small businesses are the primary source of local employment.

This report is part of a series of quarterly reports that highlight key aspects of the State Financial Plan, including variances and risks, based on actual revenue and spending information from the Office of the State Comptroller Monthly Cash Reports.

New York State has a childhood obesity crisis. The New York State Department of Health estimates that one in four New Yorkers under the age of 18, or approximately 1.1 million young people, is obese.

The Comprehensive Annual Financial Report for the New York State and Local Retirement System (the System or NYSLRS) for the fiscal year ended March 31, 2008.

Over the past year, financial firms have written off hundreds of billions of dollars in bad debt, which has resulted in a loss of confidence and a destabilization of the financial markets.