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

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