The state budget poised for adoption would spend about $1 billion more than it takes in, unofficial budget records indicate. 

The fiscal 2024 spending plan anticipates $126.7 billion in state operating funds receipts, but would spend $127.7 billion, or $973 million more. 

To make the books balance, the governor and Legislature appear to be using a portion of the state’s fund balance, or unallocated cash. 

Spending fund balance isn’t a problem on its own, but it sets the state up for a mismatch between revenues and expenditures in future years.

Even before acceding to the Legislature’s demands for higher spending, Governor Hochul’s budget division in March forecast a budget gap of more than $5 billion in fiscal 2025 (which begins in 11 months), and total gaps of almost $21 billion in fiscal 2025, 2026, and 2027. The use of fund balance this year, presumably on recurring expenses, risks widening those gaps. And it leaves the state with $1 billion less with which to fill them in the event of an economic downturn.

Tags:

You may also like

Albany’s Belated Budget Binge 

State lawmakers have begun passing the bills necessary to implement the state budget for the fiscal year that began April 1. Read More

Does NY Have Too Many State Workers?

Public employee unions are pressing Governor Hochul and the Legislature to undertake a massive hiring binge. Read More

Hospital group features a misleading statistic in its budget testimony

During testimony on the state budget last week, a hospital industry official made an attention-grabbing but misleading claim – that New York's Medicaid payments to providers are "the worst in the United States." Read More

DiNapoli aims to curb NY’s borrowing binge

Comptroller Thomas DiNapoli has unveiled a new proposal for constitutionally curbing the state’s seemingly uncontrollable appetite for borrowing. Read More

In State Budgeting, Process Matters

At a panel event in Albany being hosted by the tomorrow morning, The Empire Center’s EJ McMahon and other budget experts and observers will discuss the timely topic of state budget process reform. Read More

Albany’s Underbaked, Overdue Budget Update Finally Arrives

The Hochul Administration has finally released an overdue budget report—which, on first look, shows the state's fiscal outlook virtually unchanged.  Read More

OVERDUE: Governor’s key budget update

Governor Hochul’s budget office has yet to release the statutorily required mid-year financial plan update of the state’s fiscal outlook. Read More

The Essential Plan’s accumulated surplus balloons to $8 billion, with no fix in sight

The state's Essential Plan has generated billions in surpluses as the program automatically drew pandemic relief money that it did not need Read More

Empire Center Logo Enjoying our work? Sign up for email alerts on our latest news and research.
Together, we can make New York a better place to live and work!