October 8, 2008
DiNapoli's Report Details State Financial Challenges
Annual Report on State’s Finances Details Budget Imbalances,
Higher Spending and Rising Debt
Over the next four years, New York State will see expenses rise faster than revenues while facing mounting pressure from ever higher debt service obligations, according to a report issued today by State Comptroller Thomas P. DiNapoli.
DiNapoli released his findings in the Comptroller’s annual report on the Financial Condition of New York State. The report notes that total state spending rose to $116.1 billion in State Fiscal Year (SFY2007-08, an increase of 19.3 percent since SFY 2003-04, and at a rate well above the rate of inflation (13.3 percent). Even before the recent extraordinary events in the financial markets took place, state revenue collections were projected to increase at only half the rate that spending was projected to grow.
“I’ve been saying for a long time we have to fix New York’s finances,” DiNapoli said. “We need to be smarter about spending. The downturn in the economy has elevated the problems and limited our options. We need to address the state’s growing budget problems and tighten our belts. In difficult financial times, an informed public becomes even more imperative. Everyone should understand how their tax dollars are being spent.”
State-funded debt is expected to increase to almost $67.6 billion by the end of SFY 2012-2013 from $52.4 billion at the end of SFY 2007-2008. As a result, state-funded annual debt service costs will grow to an estimated $7.6 billion from the current $4.8 billion, making debt service one of the fastest growing budget areas.
Among the report’s other findings:
The report contains a breakdown of spending in all major categories, such as public health, transportation, public safety and the environment. An overview of spending for capital projects and public authorities is also provided, along with economic and demographic trends.
The annual report of the Financial Condition of New York State provides the public with an overview of the fiscal situation of the state. DiNapoli also released the Comprehensive Annual Financial Report for SFY 2007-08 that contains a detailed and audited breakdown of state finances. For 19 consecutive years, the Office of the State Comptroller has been recognized by the Government Finance Officers Association and awarded the Certificate of Achievement for Excellence in Financial Reporting.
Click here for a copy of the Financial Condition of New York State for SFY 2007-08.
Click here for the Comprehensive Annual Financial Report for SFY 2007-08.