Click here to view the 2-minute segment.

New York, in recent budget years, has been flush with surpluses — extra money that has allowed for new spending on schools and economic development. But those days of easy spending may be coming to an end.

“There’s been a steady decline in personal income tax receipts relative to what was projected at the start of the fiscal year,” said Empire Center President EJ McMahon.

A report from Governor Andrew Cuomo’s budget division last week found tax revenue has been lagging so far this year — making gaps in the near future larger and all the more likely.

“Assuming the governor continues to hold spending at 2 percent, if he holds spending growth, we have budget gaps over the next three years starting at a little over $700 million starting next year,” McMahon said.

After that, the budget gaps will grow even larger, to $2 billion and $1.9 billion. This could mean less money for costly items in the spending plan like school aid, which increased this year by more than 6 percent.

“Certainly we’re seeing the state tax collections being down,” said State Comptroller Tom DiNapoli. “I think it suggests a tougher budget year at the state level. That will probably mean there won’t be as much local government aid, including school aid, as there was this past year.”

Cuomo has pushed for budgets for the last six years that keep state spending under a year-over-year increase of 2 percent, a voluntary provision that Senate Republicans want to enact in law. But the pledge to stick to the spending cap could complicate next year’s budget negotiations.

“Now he’s really going to have to really make sure he tows that line,” McMahon said. “This is really going to be the acid test for Governor Cuomo’s commitment to fiscal restraint.”

And if the gap proves to be a major road block, there’s always tax increases, something that Democratic lawmakers may increasingly favor for those making more than $1 million, but will likely be opposed by Republicans.

© 2016 Spectrum News

You may also like

New York’s Estimated Annual Electricity Bills Rise $275—Third-Largest Increase in U.S.

FOR IMMEDIATE RELEASE, ALBANY, N.Y. — New York households’ estimated annual electricity bills rose by $275, or 11 percent. This was the third-largest dollar increase among the 50 states, behind only Hawaii and New Ham Read More

Energy Data Bulletin – October 2026

October 2026 Summary and Insights Electricity. In July 2026, New York had the nation’s fifth-highest residential electricity price at 29.90 cents per kilowatt-hour (kWh), 63.3 percent above the U.S. average. Prices i Read More

New York’s Nursing Home Tragedy: Why the Truth Still Matters

The following guest contribution was written by Brad Wenstrup, a former U.S. Congressman, doctor of podiatric medicine, combat surgeon, and chairman of the House Select Subcommittee on the Coronavirus Pandemic during the 118th Congress. Senate Read More

What They Make 2026: North Country

Lewis County employees held nine of the North Country's ten highest-paid local government positions in fiscal year 2025-26, most of them physicians and medical staff, . Jeffery Hellinger, a Lewis County employee, was the highest paid, at $265,978. Read More

What They Make 2026: Mohawk Valley

Eight local government employees in the Mohawk Valley had gross pensionable earnings of more than $200,000 in fiscal year 2025-26, . Four were county elected officials and three were Oneida County correction officers. The highest paid was Christina Pea Read More

What They Make 2026: Southern Tier

Mary Nobilski, a Steuben County employee, was the Southern Tier's highest-paid local government employee in fiscal year 2025-26, at $309,582, . She was the only local employee in the region paid more than Governor Hochul's $250,000 salary. Stat Read More

What They Make 2026: Central New York

Syracuse police officers held all ten of the highest-paid local government positions in Central New York during fiscal year 2025-26, . John Tassini was the highest paid, at $282,861. Statewide, the 179,222 employees of New York's counties, citi Read More

What They Make 2026: Finger Lakes

Rochester police officers held eight of the ten highest-paid local government positions in the Finger Lakes region during fiscal year 2025-26, . Robert Hill was the region's highest-paid employee, at $314,040. Statewide, the 179,222 employees o Read More
Text here