New York has hit the jackpot.

The state is due to receive a windfall of $4.5 billion thanks to a string of legal settlements with banks and insurance companies.

That bonanza includes a $300 million payment announced Thursday — part of a $16.65 billion national settlement by Bank of America for peddling some of the crummy mortgage securities that led to the financial crisis of 2008.

The question now is how the mountain of loot will be spent. It’s a discussion that will likely intensify as part of next year’s state budget negotiations.

Fiscal hawks fear state leaders will be tempted to use the money to fund recurring programs, which they say will only cause big budget gaps in future years.

“If they put a significant amount into recurring expenditures, you’re increasing permanent spending commitments without having the money to fund them,” said E.J. McMahon, of the conservative-leaning Empire Center for New York State Policy.

He said the state would be better off using the bulk of the windfall on one-time expenditures, such as mass transit and upstate transportation projects.

Morris Peters, a spokesman for Gov. Cuomo’s budget office, said the administration could support using the money for such one-time capital expenditures, as well as for bolstering the state’s cash reserves, and reducing debt.

“That doesn’t mean that’s where we’ll land,” Peters said, noting that the spending is subject to negotiations with the Legislature.

In a radio interview Thursday, Senate Republican leader Dean Skelos (R-Nassau County) said most of the windfall should be used to fund bridge, road, sewer and other infrastructure projects.

But he also didn’t rule out using some on tax cuts and education funding.

A spokesman for Assembly Speaker Sheldon Silver (D-Manhattan) had little comment. “All that will be discussed with the members,” he said.

© 2014 New York Daily News