New York State is in the process of collecting more than $5 $6 billion in fines and penalties from financial institutions accused of violating state or federal laws.*

What should the state do with this unprecedented windfall?  That’s one of the biggest questions facing Governor Cuomo and the Legislature in early 2015.

The Empire Center has been out front with an answer: invest in infrastructure, especially highway and bridge reconstruction work, which has become too reliant on borrowed money and is in danger of becoming seriously underfunded.

The case for infrastructure investment is laid out in a series of articles, presented here in reverse chronological order:

Putting the money into operating expenditures is a bad idea because higher spending could only be sustained with higher future taxes, we have argued. (See, for example, “New York public schools’ state-aid fantasy,” a Nov. 24, 2014, Newsday op-ed.)

By the same token, any tax cut financed with this money could only be temporary unless matched to an ironclad commitment of future spending cuts in the same amount. Since the governor and Legislature already need to cut projected spending trends by billions just to balance the next several budgets, no such commitment is on the horizon.

Bottom line: strategically targeted infrastructure investments would be the best way to use this one-shot injection of cash to produce  truly lasting benefits for all New Yorkers.

* The $5.4 billion in windfall funds budgeted for allocation beginning in fiscal 2016 is itemized by source on page 48 of the Mid-Year Update to the state’s FY 2015 Financial Plan. And on March 12, the state disclosed it would be collecting another $610 million in fines from yet another financial institution, Germany’s Commerzbank.

Payer Amount
millions of dollars
BNP Paribas 3,591
Commerzbank 610
Credit Suisse AG 715
Bank of Tokyo Mitsubishi 315
Bank of America 300
Standard Chartered Bank 300
Bank Leumi 130
Ocwen Financial 100
Citigroup 92
MetLife Parties 50
American Internationl Group 35
PricewaterhouseCoopers 25
AXA Equitable Life Insurance Co. 20
Chase 11
Other settlements (TBD) 7

About the Author

Tim Hoefer

Tim Hoefer is president & CEO of the Empire Center for Public Policy.

Read more by Tim Hoefer

You may also like

The fatal flaw in New York’s climate Superfund law

In 2024, the New York state Legislature decided the state needed some money — $75 billion, to be exact — for “comprehensive adaptation to the effects of in New York state.” The Legislature thought it had found Read More

Long Islanders and Empire Center Debate Homeschooling

Greater Long Island’s recent into the rise of homeschooling sparked quite a debate. Hundreds of readers on Facebook, weighing in on everything from academics and socialization to parental rights, teacher qualifications, a Read More

Taxes, the Cost of Living, and Feeling Ignored: Why New Yorkers Are Thinking of Leaving

FOR IMMEDIATE RELEASE ALBANY, N.Y. - New Yorkers across the political spectrum are considering leaving the state. A new finds that Republicans and independent voters most often cite taxes as the reason, while Dem Read More

Leaving New York

Executive Summary The desire to leave New York is strong and cuts across every demographic group measured in the survey. One-third of New Yorkers have considered leaving the state within the next five years, while another third know some Read More

N.Y. fails education despite spending big

New York’s schools are spending more than ever, but student performance keeps falling. Unsurprisingly, Empire Center’s latest opinion poll shows  with how education is run. They want better results, less spending, and more choice — something th Read More

Albany Steers Nearly $100 Million in 2026 Pork Barrel Spending

Albany steered $97.2 million to 206 local projects during the first half of 2026 in the newest batch of state discretionary grants, according to. The new tranche is the latest addition to the pork-barrel grant database the Empire Center h Read More

New York’s Electricity Prices Fifth Highest in the Country

FOR IMMEDIATE RELEASE ALBANY, N.Y. — Empire Center’s shows New York households paid the fifth‑highest residential electricity prices in the country in June 2026, trailing only Hawaii, California Read More

New Poll Shows New Yorkers Want Cheaper Energy — RGGI’s Price Record Shows They Aren’t Getting It

Editor's note: Roger Caiazza is an adjunct fellow at the Empire Center. He has a long and deep private industry background in environmental regulatory analysis and compliance. His frequently updated personal blog on New York Read More