Archive for November, 2017

An Alarming Report from State Comptroller Thomas DiNapoli

November 8th, 2017 by Robert Lowry

Last week, State Comptroller Thomas DiNapoli released a report warning that state finances face “a triple threat of fiscal risks” from the combination of “projected budget gaps, weaker than expected personal income tax collections and cuts to federal programs.”

Yesterday, the Comptroller issued a new report amplifying that warning. The report projects that current year state revenues will fall $1.848 billion below the total projected by the Division of the Budget (DOB) in August. Revenues for 2018-19 are projected to fall $2.828 billion short of the August DOB projections. DOB is the office which leads the development of the Governor’s budget proposals and the implementation of enacted state budgets.

In August, DOB forecast a structural deficit of $4 billion for state fiscal year 2018-19. As I noted in an earlier blog post, a $4 billion deficit equates to about 4 percent of projected expenditures supported by state taxes, fees, the Lottery and other state sources. The Comptroller’s additional projected revenue shortfall for 2018-19 would raise next year’s structural deficit to $6.8 billion. Adding the current year shortfall would increase the gap for next year to $8.6 billion. Read the rest of this entry »

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Former State Education Commissioner Richard Mills

November 8th, 2017 by Robert Lowry

Former State Education Commissioner Richard P. Mills died last week while hiking in the Adirondacks with a friend. He was 73 years old. Read the rest of this entry »

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State Budget Outlook, More Information Due Soon

November 1st, 2017 by Robert Lowry

Yesterday, State Comptroller DiNapoli released a report warning that the state faces a “triple threat of fiscal risks” from the combination of “projected budget gaps, weaker than expected personal income tax collections and cuts to federal programs.” Read the rest of this entry »

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SALT and Schools

November 1st, 2017 by Robert Lowry

New York State had a narrow escape from potential catastrophe when Republican efforts in Washington to repeal and replace the Affordable Care Act failed once again in September. The Cassidy-Graham proposal would have stripped billions of dollars in Medicaid funding from the state budget and jeopardized health care coverage for an estimated 2.7 million New Yorkers, including perhaps one million children.

A new threat has emerged in the form of federal tax reform. Last week the House of Representatives passed an outline of federal budget for 2017-18 which envisioned ending deductibility of state and local taxes, referred to as “SALT.” Any reduction in SALT deductibility would be damaging for New York State and ultimately for schools. House leadership now plans to release its actual tax reform legislation this week. Read the rest of this entry »

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