New York state is still at the top of the tax-and-spend heap and has a long way to go to tame its costly habits, a new analysis of the nation’s biggest states found.

Among six big states, New York cut fewer government jobs proportionately than New Jersey, California, Texas and Illinois over the last three years, with only Virginia adding jobs.

And New York was still spending the most on government while at the same time taxing the most as a portion of income in 2009, the report by former Federal Reserve Board Chairman Paul Volcker and ex-New York Lt. Gov. Richard Ravitch found.

New York and California enacted the biggest of 40 state tax or fee hikes during the global financial crisis between fiscal years 2009 and 2011, the “Report of the State Budget Crisis Task Force” found in warning that monetary woes are limiting states’ ability to deliver basic services.

New York nearly doubled its education spending per student from 1999 to 2009, boosting it to 68 percent above the national average.

And the Empire State’s Medicaid program spends more than Florida, Texas and Pennsylvania combined with 72 cents of every dollar going to optional medical services for the poor and disabled, the report found.

The task force, created to study state finances in the wake of the financial meltdown, did credit Gov. Cuomo for taking steps to rein in Medicaid spending.

But the report’s “unambiguous” conclusion about state governments stated, “The existing trajectory of state spending, taxation, and administrative practices cannot be sustained. The basic problem is not cyclical. It is structural.”….

Read article here

You may also like

State’s Growing Budget Hole Threatens NYC Jobs and Aid as Congress Takes a Holiday

“The biggest problem for the state is the enormous, recurring structural budget gap starting next year and into the future,” said E.J. McMahon of the conservative-leaning Empire Center. “Cuomo clearly hopes that starting in 2021, (Democratic presidential candidate Joseph) Biden and a Democratic Congress will provide states and local government a couple of year’s worth of added stimulus. Read More

How Andrew Cuomo became ‘maybe the most powerful governor’ in U.S.

Ed McKinley ALBANY — When the New York Constitution was reorganized nearly 100 years ago to give the governor more power over the budget process,  noted there was a risk of making “the governor a czar." M Read More

Study disputes Cuomo on Trump tax package; experts say it’s complicated

Michael Gormley ALBANY — A new study by a conservative think tank says President Donald Trump’s 2017 tax law gave most New Yorkers a tax cut, even as Gov. Andrew M. Cuomo insists on repealing the measure because he says it will cost New Yo Read More

Empire Center sues Department of Health over nursing home records

Johan Sheridan ALBANY, N.Y. () — The Empire Center filed a  against the state Department of Health on Friday. “This case isn’t about assigning blame or embarrassing political leaders,” said Bill Hammond, the Empire Center’s Read More

Good news: That New York pork isn’t going out the door after all

The Empire Center first reported Tuesday that grants — 226 of them, totaling $46 million, to recipients selected by the governor and individual state lawmakers — seemed to still be going ahead. Read More

New York Lawmakers Seek Independent Probe of Nursing-Home Coronavirus Deaths

With lingering questions about how the novel coronavirus killed thousands of New Yorkers who lived in nursing homes, a group of state lawmakers is pushing to create an independent commission to get answers from the state Department of Health. Read More

Policy analyst: Cuomo wrong to write-off nursing home criticism as political conspiracy

“The importance of discussing this and getting the true facts out is to understand what did and didn’t happen so we can learn from it in case this happens again,” Hammond said. Read More

EDITORIAL: Nursing home report requires a second opinion

No doubt, the Health Department and the governor would like this report to be the final word on the subject. But if it’s all the same with them, we’d still like a truly independent review. Read More