This paper provides an Empire State perspective on federal income tax cuts enacted since 2001. It estimates the resulting decrease in New Yorkers’ tax payments and describes the implications for New York of proposed future changes in federal tax policy.
City-funded spending would increase almost 10 percent under New York's newly adopted budget for fiscal 2005. The budget's financing structure, which relies heavily on prior-year surplus and one-shot revenues, sets the stage for a looming shortfall in fiscal 2006.
A “budget reform” measure partially approved by the New York State Senate and Assembly is little more than a constitutional power grab by the Legislature and a prescription for higher spending.
The projected "out-year" gap in Mayor Bloomberg's proposed 2005 budget is the largest on record, leaving New York's finances extremely vulnerable to external shocks in the year ahead. City spending is now growing at an unsustainable pace; as a result, barring another boom on the late 1990s scale, Bloomberg could feel increasingly pressed to reduce spending as he approaches the next mayoral election.
New York State spending has outpaced inflation even as tax receipts plummeted since 2001. The state budget is on track to continue growing at twice the inflation rate over next several years—resulting in large projected future budget gaps, and raising the specter of expanded tax hikes."
A tentative contract agreement between Governor George Pataki and New York’s largest union of state government workers would permanently add billions of dollars to New York State and New York City budgets, if it is ratified by union membership and ends up setting a pattern for the state’s other collective bargaining units.
The 2004-05 Executive Budget features one of the largest state funds spending increases George Pataki has proposed in nine years as Governor of New York.
Despite a continuing economic slump and the most serious municipal fiscal crisis in a quarter-century, the New York City budget is growing at nearly twice the inflation rate.
Many New Yorkers who may consider themselves middle class will be paying higher effective marginal rates than billionaires under the "temporary" state and city income tax hikes recently approved by the State Legislature.
Governor Pataki's 2003-04 budget proposal calls for smaller spending cuts than the budgets he proposed during his first two years in office—even though the current budget gap is more than twice as large.
Just how big is the New York City Transit Authority's deficit? The answer to that question appears to be (a) not nearly as big as the NYCTA would have had everyone believe going into the TWU talks, but also (b) not nearly as big as it will be once the Authority gets through paying for the wage and benefit increases in the new transit workers contract—unless a fare increase is approved soon.
If the new transit workers deal is used as the “pattern” in the next round of collective bargaining with New York's public employee unions, the result would be $725 million in added labor costs for the state and $1.2 billion a year in added costs for the city, not including any offsetting productivity concessions.