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New York state budget and finances

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New York budget and finances
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General information
Budget calendar:
Annual
Fiscal year:
2015
State credit rating:
AA (as of 2014)
Current governor:
Andrew Cuomo
Financial figures
Total spending (state and federal funds):
$134.1 billion (estimated for 2014)
Per capita spending:
$6,790.46 (estimated for 2014)
Total state tax collections:
$73.7 billion (2013)
Per capita tax collections:
$3,740.27 (2013)
State debt:
$387.5 billion (as of 2014)
Per capita state debt:
$19,799 (as of 2014)
State budgets and finances
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Total state expendituresState debtTax policy in New York
Note: This page utilizes information from a variety of sources. As such, the currency of the information varies somewhat. The information presented on this page reflects the most recent data available as of February 2015.
Between fiscal years 2013 and 2014, total government spending in New York increased by approximately $1 billion, from $133 billion in fiscal year 2013 to an estimated $134 billion in 2014. This represents a 0.75 percent increase. The cumulative rate of inflation during the same period was 1.58 percent, calculated using the Consumer Price Indices for January 2013 and January 2014. As of 2014, financial services firm Standard and Poor's had assigned New York a credit rating of AA.[1][2][3]
New York collected $73.7 billion in state government tax collections in 2013. This amounted to $3,740 per capita, the eighth-highest in the nation.

Spending

Definitions

The information below comes from the National Association of State Budget Officers (NASBO). These spending figures are broken into three broad categories in order to facilitate comparison between the states.[3]

  • State funds: State funds include general and other state-based funds. A general fund is "the predominant fund for financing a state's operations." Other state funds are "restricted by law for particular governmental functions or activities."
  • Federal funds: Federal funds are "funds received directly from the federal government."
  • Total spending: Total spending is calculated by adding together the totals for state and federal funds.

These figures exclude spending from the sale of bonds.

2014 expenditures

See also: Total state expenditures

The table below breaks down estimated spending totals for fiscal year 2014 (comparable figures from surrounding states are included to provide additional context). Figures for all columns except "Population” and “Per capita spending" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the columns labeled "Population” and “Per capita spending" have not been abbreviated.[3]

In New York in fiscal year 2014, total estimated spending amounted to $134.1 billion. Estimated per capita spending was $6,790.

Total estimated state spending, FY 2014 ($ in millions)
State State funds Federal funds Total spending Population Per capita spending
New York $92,915 $41,171 $134,086 19,746,227 $6,790.46
Delaware $7,253 $1,903 $9,156 935,614 $9,786.09
Maryland $27,479 $9,859 $37,338 5,976,407 $6,247.57
New Jersey $39,574 $13,566 $53,140 8,938,175 $5,945.29
Pennsylvania $62,391 $23,810 $86,201 12,787,209 $6,741.19
Per capita figures are calculated by taking the state's total spending and dividing by the number of state residents according to United States Census estimates.[4]
Source: National Association of State Budget Officers

Spending by function

See also: State spending by function as a percent of total expenditures
Breakdown of spending by function in FY 2013
Source: National Association of State Budget Officers

State spending in New York can be further broken down by function (elementary and secondary education, public assistance, etc.). Fiscal year 2013 information is included in the table below (information from neighboring states is provided for additional context). Figures are rendered as percentages, indicating the share of the total budget spent per category.[3]

In fiscal year 2013, Medicaid accounted for 29.1 percent of total state spending, a greater share than in any neighboring state.

State spending by function as a percent of total expenditures, FY 2013
State K-12 education Higher education Public assistance Medicaid Corrections Trans-
portation
Other
New York 19.3% 7.6% 3% 29.1% 2.5% 6.4% 32.1%
Delaware 24.3% 4.6% 0.3% 17.2% 3% 8.7% 42%
Maryland 19.2% 14.5% 3.8% 21% 4% 10% 27.5%
New Jersey 24.9% 7.9% 0.9% 20.4% 3.1% 10% 32.8%
Pennsylvania 14.9% 2.1% 1.5% 26.9% 2.6% 7.5% 44.6%
Source: National Association of State Budget Officers
Note: "Other" expenditures include "Children's Health Insurance Program (CHIP), institutional and community care for the mentally ill and developmentally disabled, public health programs, employer contributions to pensions and health benefits, economic development, environmental projects, state police, parks and recreation, housing and general aid to local governments."[3]

Spending trends

Between 2009 and 2013, the share of the state budget spent on Medicaid increased from 26.7 percent to 29.1 percent. See the table below for further details (figures are rendered as percentages, indicating the share of the total budget spent per category).[3][5][6][7][8]

Spending by function from 2009 to 2013 (as percentages)
Year K-12 education Higher education Public assistance Medicaid Corrections Transportation Other
2013 19.3% 7.6% 3% 29.1% 2.5% 6.4% 32.1%
2012 19.8% 7.6% 2.8% 29.4% 2.3% 6.2% 31.8%
2011 20.7% 7.1% 2.8% 29.1% 2.4% 6.4% 31.4%
2010 20.4% 7.5% 3.0% 28.7% 2.7% 6.1% 31.5%
2009 21.5% 7.0% 3.0% 26.7% 2.7% 5.7% 33.3%
Source: National Association of State Budget Officers
Note: "Other" expenditures include "Children's Health Insurance Program (CHIP), institutional and community care for the mentally ill and developmentally disabled, public health programs, employer contributions to pensions and health benefits, economic development, environmental projects, state police, parks and recreation, housing and general aid to local governments."[3]

Revenues

2013 revenues

See also: State government tax collections by source

The table below breaks down state government tax collections by source in 2013 (comparable figures from surrounding states are also provided to give additional context). Figures for all columns except "Population" and "Per capita revenue" are rendered in thousands of dollars (for example, $2,448 translates to $2,448,000). Figures in the columns labeled "Population" and "Per capita revenue" have not been abbreviated.[9]

In New York in 2013, per capita state tax collections totaled $3,740, a greater amount than in any neighboring state.

State tax collections by source ($ in thousands)
State Property taxes Sales and gross receipts Licenses Individual income taxes Corporation net income taxes Other taxes Total 2013 population Per capita collections
New York N/A $23,217,491 $1,952,367 $40,230,379 $4,920,605 $3,346,329 $73,667,171 19,695,680 $3,740.27
Delaware N/A $487,202 $1,259,277 $1,130,501 $309,644 $159,692 $3,346,316 925,240 $3,616.70
Maryland $750,927 $7,347,048 $805,292 $7,693,324 $952,092 $569,508 $18,118,191 5,938,737 $3,050.85
New Jersey $4,620 $12,198,133 $1,516,432 $12,108,615 $2,282,055 $967,026 $29,076,881 8,911,502 $3,262.85
Pennsylvania $55,537 $17,106,300 $2,585,202 $10,777,334 $2,208,163 $1,233,090 $33,965,626 12,781,296 $2,657.45
Source: Tax Policy Center, "State Tax Collection Sources 2000-2013," June 20, 2014
New York tax collections by source in 2013
Source: Tax Policy Center

The table below lists 2013 tax collections by source as percentages of total collections. In New York, individual income taxes accounted for 54.6 percent of total state tax collections, a greater share than in any neighboring state.[9]

State tax collections by source (as percentages)
State Property taxes Sales and gross receipts Licenses Individual income taxes Corporation net income taxes Other taxes
New York N/A 31.52% 2.65% 54.61% 6.68% 4.54%
Delaware N/A 14.56% 37.63% 33.78% 9.25% 4.77%
Maryland 4.14% 40.55% 4.44% 42.46% 5.25% 3.14%
New Jersey 0.02% 41.95% 5.22% 41.64% 7.85% 3.33%
Pennsylvania 0.16% 50.36% 7.61% 31.73% 6.50% 3.63%
Source: Tax Policy Center, "State Tax Collection Sources 2000-2013," June 20, 2014

Current fiscal year budget

See also: Historic New York budget and finance information

Fiscal year 2015

DocumentIcon.jpg See budget bill: Enacted Budget for Fiscal Year 2015

Governor Andrew Cuomo announced his fiscal year 2015 budget proposal on January 21, 2014. Under the governor's proposal, total spending for fiscal year 2015 would have equaled approximately $137.2 billion.[10]

In April 2014, Cuomo signed into law the fiscal year 2015 budget. The enacted budget totaled $138 billion. The budget included funding for the expansion of pre-kindergarten programs. The budget also included $1.5 billion in property tax cuts.[10]

State debt

See also: State debt

According to a January 2014 report by the nonprofit organization State Budget Solutions, New York had a state debt of approximately $387 billion. Its state debt per capita was $19,799. The report revealed that state governments faced a combined $5.1 trillion in debt. The obligation amounted to $16,178 per capita in the nation.[11]

Total state debt, 2014
State Total state debt State debt per capita Per capita debt ranking
New York $387,465,667,000 $19,799 10
Delaware $15,991,093,000 $17,437 17
Maryland $94,211,004,000 $16,010 20
New Jersey $213,933,875,000 $24,134 6
Pennsylvania $184,903,767,000 $14,487 24
Sources: State Budget Solutions, "State Budget Solutions' Fourth Annual State Debt Report," January 8, 2014

Public pensions

See also: New York public pensions and New York public employee salaries

A 2012 report from the Pew Center on the States noted that New York's pension system was funded at 94 percent at the close of fiscal year 2010, well above the 80 percent funding level experts recommend. Consequently, Pew designated the state's pension system as a "solid performer."[12]

The funding ratio for the state's pension system decreased from 105.24 percent in fiscal year 2007 to 88.21 percent in fiscal year 2012, a drop of 17.03 percentage points, or 16.18 percent. Likewise, unfunded liabilities increased from a surplus of over $11 billion in fiscal year 2007 to more than $30 billion in fiscal year 2012.

Credit ratings

See also: State credit ratings

Credit rating agencies, such as Standard and Poor's, assign grades to states that take into account a state's ability to pay debts and the general health of the state's economy. Generally speaking, a higher credit rating indicates lower interest costs on the general obligation bonds states sometimes sell to investors in order to finance large-scale undertakings (e.g., road construction and other public works projects). This in turn results in lower interest costs, thereby lowering the cost to taxpayers.[13][14]

The table below lists the Standard and Poor's credit ratings for New York and surrounding states from 2004 to 2014. Standard and Poor's grades range from AAA, the highest available, to BBB, the lowest.[15]

State credit ratings, 2004 to 2014
State 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004
New York AA AA AA AA AA AA AA AA AA AA AA
Delaware AAA AAA AAA AAA AAA AAA AAA AAA AAA AAA AAA
Maryland AAA AAA AAA AAA AAA AAA AAA AAA AAA AAA AAA
New Jersey A+ AA- AA- AA- AA AA AA AA AA AA AA-
Pennsylvania AA AA AA AA AA AA AA AA AA AA AA
Source: Stateline: The Daily News Service of The Pew Charitable Trusts, "Infographic: S&P State Credit Ratings, 2001-2014," June 9, 2014

Federal aid to the state budget

See also: Federal aid to state budgets

State governments receive aid from the federal government to fund a variety of joint programs, such as Medicaid. Federal aid varies considerably from state to state. For example, Mississippi received approximately $7.7 billion in federal aid in 2012, which accounted for more than 45 percent of the state's general revenues. By contrast, Alaska received roughly $2.9 billion in federal aid in 2012, just under 20 percent of the state's general revenues.[16]

The table below notes what share of New York’s general revenues came from the federal government in 2012. That year, New York received approximately $48.7 million in federal aid, 32.8 percent of the state's total general revenues. Figures from surrounding states are provided for additional context.[16]

Federal aid to state budgets, 2012
State Total federal aid ($ in thousands) Federal aid as a % of general revenue Ranking
New York $48,698,785 32.78% 27
Delaware $1,814,112 24.68% 46
Maryland $10,030,264 30.16% 33
New Jersey $13,412,759 26.25% 42
Pennsylvania $20,440,103 30.60% 32
Source: United States Census Bureau, "State Government Finances: 2012," accessed February 24, 2014

Stimulus

According to Recovery.gov, the official government website for the Recovery Accountability and Transparency Board, under the American Recovery and Reinvestment Act, New York received $14.90 billion in federal stimulus funding from the American Recovery and Reinvestment Act between February 2009 and June 2013.[17]

Budget process

New York operates on an annual budget cycle. The sequence of key events in the budget process is as follows:[18][19]

  1. Budget instruction guidelines are sent to state agencies in July or August.
  2. State agencies submit budget requests in September.
  3. Agency hearings are held in October and November.
  4. The governor submits his or her proposed budget to the New York State Legislature on or before the second Tuesday following the first day of the annual meeting of the legislature, which typically falls in mid-January.
  5. The legislature adopts a budget in March. A simply majority is needed to pass a budget.
  6. The fiscal year begins in April.

New York is one of 44 states in which the governor has line item veto authority.[19]

The governor is constitutionally required to submit a balanced budget. In turn, the legislature is required by statute to pass a balanced budget.[19]

Agencies, offices and committees

The following standing committee in the New York State Legislature deals with budget and finance matters:[20]

  1. Finance Committee, New York State Senate

The New York Comptroller audits state agencies, public authorities, and all local governments in New York, including New York City. The comptroller's reports are published online and can be accesssed here. The comptroller is the state's chief fiscal officer.[21]

Studies and reports

U.S. PIRG "Following the Money" report

See also: "Following the Money" report, 2014

The U.S. Public Interest Research Group, a consumer-focused nonprofit organization based in Washington, D.C., released its annual report on state transparency websites in April 2014. The report, entitled "Following the Money," measured how transparent and accountable state websites are with regard to state government spending.[22] According to the report, New York received a grade of B+ and a numerical score of 88, indicating that New York was "advancing" in terms of transparency regarding state spending.[22]

Budget and finance ballot measures

Voting on
state and local
government budgets,
spending and finance
State finance.jpg
Policy
Budget policy
Ballot measures
By state
By year
Not on ballot
See also: Spending and finance on the ballot and List of New York ballot measures

Ballotpedia has tracked the following ballot measures relating to state and local budget and financial matters in New York.

  1. New York Municipal Debt Limit Exemption for Sewage Improvements Amendment, Proposal 3 (2013)
  2. New York Proposal 1, Spending on Sewage Facilities Excluded from Debt Limits (2003)
  3. New York Proposal 1, State Budget Process Act (2005)
  4. New York Proposal 2, Small City School Districts Excluded from Debt Limits (2003)

Recent news

This section displays the most recent stories in a Google news search for the terms "New York budget."

Some of the stories below may not be relevant to this page due to the nature of Google's news search engine.

New York state budget and finances - Google News Feed

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Contact information

New York Division of the Budget
200 Davis Ave
Waterford, NY 12188
Telephone: 518-237-0613

See also

External links

Additional reading

References

  1. Bureau of Labor Statistics, "CPI Detailed Report Data for February 2014," accessed April 9, 2014
  2. InflationData.com, "Cumulative Inflation Calculator," February 28, 2014
  3. 3.0 3.1 3.2 3.3 3.4 3.5 3.6 National Association of State Budget Officers, "State Expenditure Report: 2012-2014," accessed February 18, 2015
  4. United States Census Bureau, "State and County QuickFacts," accessed February 23, 2014
  5. National Association of State Budget Officers, "State Expenditure Report, 2009-2011," accessed February 24, 2014
  6. National Association of State Budget Officers, "State Expenditures Report, 2010-2012," accessed February 24, 2014
  7. National Association of State Budget Officers, "State Expenditure Report, 2009," accessed February 24, 2014
  8. National Association of State Budget Officers, "State Expenditure Report, 2008," accessed February 24, 2014
  9. 9.0 9.1 Tax Policy Center, "State Tax Collection Sources 2000-2013," June 20, 2014
  10. 10.0 10.1 National Association of State Budget Officers, "Summaries of Fiscal Year 2015 Proposed and Enacted Budgets," July 11, 2014
  11. State Budget Solutions, "State Budget Solutions' Fourth Annual State Debt Report," January 8, 2014
  12. Pew Center on the States, "Widening Gap Update: New York," June 18, 2012
  13. Stateline: The Daily News Service of The Pew Charitable Trusts, "Infographic: S&P State Credit Ratings, 2001-2012," July 13, 2012
  14. Bankrate, "The 6 states with the worst credit ratings," September 27, 2012
  15. Stateline: The Daily News Service of The Pew Charitable Trusts, "Infographic: S&P State Credit Ratings, 2001-2014," June 9, 2014
  16. 16.0 16.1 United States Census Bureau, "State Government Finances: 2012," accessed February 24, 2014
  17. Recovery.gov, "Stimulus Spending by State," accessed February 21, 2014
  18. National Conference of State Legislatures, "State Experiences with Annual and Biennial Budgeting," updated April 2011
  19. 19.0 19.1 19.2 National Association of State Budget Officers, "Budget Processes in the States, Summer 2008," accessed February 21, 2014
  20. New York State Senate, "Standing Committees," accessed March 20, 2015
  21. New York Office of the State Comptroller, "Home page," accessed November 2, 2009
  22. 22.0 22.1 U.S. Public Interest Research Group, "Following the Money 2014 Report," accessed April 15, 2014