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

132 NYSLRS Retirees Receive Pensions Over $200K in FY2026

A total of 132 retirees from the New York State and Local Retirement System (NYSLRS) were eligible to collect $200,000 or more in pensions during the 2026 fiscal year, according to , the Empire Center’s government transparency website. Among the 132 Read More

Opinion Poll – Education

Executive Summary New Yorkers want better educational outcomes, more flexibility for families, and meaningful academic standards, according to new Empire Center poll results. Voters overwhelmingly believe New York should improve s Read More

Empire Center Poll: Just 4 Percent Approve of New York’s Education System

ALBANY, N.Y. — New Yorkers gave the state’s education system a sweeping vote of no confidence: 47 percent said the state should improve student performance, 41 percent said it should improve performance while spending less, and only 4 Read More

New York’s electricity prices climb to third highest in the U.S.

FOR IMMEDIATE RELEASE ALBANY, N.Y. — Empire Center’s shows New York households paid the third-highest residential electricity prices in the country in May 2026, trailing only Hawaii and California. The latest U.S. Energy Information Administra Read More

Energy Data Bulletin July 2026

July 2026 Summary and Insights Electricity. In April 2026, New York’s average residential electricity price was 29.45 cents per kilowatt-hour (kWh). New York ranked 4th highest among the states (tied with Massachu Read More

Energy Data Bulletin August 2026

August 2026 Summary and Insights Electricity. In May 2026, New York had the nation's third-highest residential electricity price at 29.93 cents per kilowatt-hour (kWh), 62.3 percent above the U.S. average. Prices inc Read More

Port Authority Payroll Passes $1.2B as 20 Employees Collect $400k+

Twenty Port Authority of New York and New Jersey (PANYNJ) employees collected more than $400,000 each in total pay last year, while average pay agencywide rose three percent, according to , the Empire Center’s government transparency website. The Por Read More

NYC Employee Pension Payments Rise To $6.2 billion

The pension plan covering most New York city government agencies, including the City’s subway system, had 62 members with pension payments of at least $200,000 last year, according to , the Empire Center’s transparency website. According to the d Read More