Although New York City was an early epicenter for COVID-19, only 45.6 percent of firms in the City received Paycheck Protection Program (PPP) loans, below the national average of 50.9 percent.
Unemployment rates for New York State, New York City and the balance of the State spiked upward in April 2020. At that point, and in the months immediately before, the percentages of officially unemployed workers in the City and in the rest of the State were nearly identical — but those numbers have since diverged sharply.
DiNapoli's office issues a state cash report every month identifying actual state revenues and spending from the prior month. The cash report focuses primarily on the General Fund and All Governmental Funds. The General Fund is the major operating fund of the state. All Governmental Funds includes General, Special Revenue, Debt Service and Capital Projects funds, as well as funds from the federal government.
This past year, New York faced extraordinary fiscal challenges as a result of the economic downturn, the failure to exercise budgetary restraint during more prosperous times, and the failure to act quickly when the State’s finances began to show signs of difficulty, as well as the collapse of the stock market through 2002 and the devastation, both in human and financial terms, of 9-11.
At the end of the 2003-2004 fiscal year, the State’s General Fund was able to report an operating surplus of $3 billion, largely as a result of using the proceeds of tobacco bonds to pay operating expenses.
Last fiscal year, the process by which the budget was constructed improved immeasurably. The budget was passed in a timely fashion, and more legislators were involved in crafting the final product.
As the current administration ends its tenure, the State faces significant financial challenges. The 2006-07 enacted budget contains an estimated two-year budget gap of as much as $13.9 billion, with spending projected to grow twice as fast as revenues between 2005-06 and 2008-09.
New York faces considerable fiscal challenges that will require the State’s leaders to find creative and effective solutions in order to chart a positive course for the future. A well-planned, collaborative effort will help the State reverse patterns of unsustainable spending, rising debt levels and structural budgetary imbalances.
The State of New York faces serious fiscal challenges. Over the next few years, the State is projected to face annual budget gaps that combine to exceed $26 billion. For too long, New York’s budgets have contained spending commitments that dramatically outpace realistic revenue growth.
