Brace for some stiff fiscal pain, NY — courtesy of Hochul and Albany DemsBy NY Post Editorial Board
July 18, 2023
If you live in New York, brace for some serious fiscal pain.
State Comptroller Thomas DiNapoli, a Democrat, is sounding the alarm on Albany’s rapidly deteriorating fiscal outlook — citing a jaw-dropping $36 billion cash shortfall over the next four years, as the economy weakens, tax revenue falls and spending spirals.
In a worrisome new report, DiNapoli notes that the cumulative gap through 2027 grew by a total of $15.6 billion, or about 75%, in just the three months leading up to the adoption of this year’s budget back in late April.
And get this: The shortfall would’ve been closer to a mind-numbing $50 billion if the Division of the Budget hadn’t re-timed payments (basically an accounting move).
Make no mistake: These are not the usual out-year gaps.
As DiNapoli noted, they’re “well above typical forecasted levels over the previous 15 years.”
Meaning they can’t be plugged as easily as usual budget holes; they’re way too big.
“The state’s fiscal outlook has changed considerably over the past year, and significant economic and fiscal risks could further upend the state’s finances,” warned DiNapoli.
And, no, the left-wing Fiscal Policy Institute’s Nathan Gusdorf is not right to claim the $19.5 billion in state cash reserves will be enough to handle future budget gaps.
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DiNapoli sums it up in four words: “Spending up, revenue down.”
He cites slowing income growth and market volatility on Wall Street amid a cooling economy.
In the next four years, state outlays are projected to grow by 17.8%, almost $22 billion, while revenues fall more than 10%.
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Source:
https://nypost.com/2023/07/18/brace-for-some-stiff-fiscal-pain-ny-courtesy-of-hochul-and-albany-dems/
