FOR RELEASE:

DiNapoli: Enacted State Budget Continues Fiscal Progress

Report Sees ‘New Era of State and Local Fiscal Policy’

New York State has made progress toward long-term budget balance but faces continuing challenges in attaining structural balance and delivering services in the future, according to an analysis of this year’s enacted budget released today by New York State Comptroller Thomas P. DiNapoli.

Despite progress towards long-term structural balance, the 2012-13 budget leaves projected budget gaps of $3.4 billion and $4.1 billion in out-years. The report notes that the state has entered a “new era of state and local fiscal policy” by enacting significant changes in its three largest expenditure categories – Medicaid, school aid and agency operations – and by enacting a cap on local property taxes.

Against a backdrop of economic volatility, realizing revenue assumptions may be challenging. Additional budget cuts or revenue increases to further reduce the structural imbalance will require difficult policy choices. In addition, poor use of debt over the past decade has depleted much of the state’s statutory debt capacity, creating challenges for funding future programs and capital projects.

The report also examines the state’s financial plan, spending on specific programs, economic outlook and tax revenues. A full copy of the report can be found at: http://www.osc.state.ny.us/reports/budget/2012/2012-13_Enacted_Budget.pdf.

DiNapoli’s office reviews the state’s budget on a monthly basis and issues cash reports, as well as provides regular analysis of the state’s fiscal plan, debt and other fiscal related matters.