New York state budget

From Ballotpedia
(Redirected from Open Book New York)
Jump to: navigation, search

New York state budget

Flag of New York.png
Budget calendar:  Annual
Fiscal year:  2014
State Credit Rating:  AA (as of May 2012)
Current Governor:  Andrew Cuomo
Financial figures
GF expenses[1]:  $59 billion
All funds expenses:  $133 billion (FY 2013 estimate)
Spending % Change:  Green Arrow Up Darker.svg4.24%[2]
% from Federal Funding:  32.78%
State Debt:  $387,465,667,000
Per Capita State Debt:  $19,799
Other state budgets
AlabamaAlaskaArizonaArkansasCaliforniaColoradoConnecticutDelawareFloridaGeorgiaHawaiiIdahoIllinoisIndianaIowaKansasKentuckyLouisianaMaineMarylandMassachusettsMichiganMinnesotaMississippiMissouriMontanaNebraskaNevadaNew HampshireNew JerseyNew MexicoNew YorkNorth CarolinaNorth DakotaOhioOklahomaOregonPennsylvaniaRhode IslandSouth CarolinaSouth DakotaTennesseeTexasUtahVermontVirginiaWashingtonWest VirginiaWisconsinWyoming
Policypedia Budget Policy-logo-no background.png
This page contains information about budget processes and policy issues in New York, including:
  • A summary of the budget drafting process
  • Trends in expenditures and revenues
  • Current and past fiscal year budget developments
  • Financial transparency measures

Between fiscal year 2009 and fiscal year 2013, New York's total expenditures increased by approximately $4 billion, from $129 billion in 2009 to $133 billion in 2013. This represents a three percent increase, below the cumulative rate of inflation during the same period (9.06 percent, calculated using the Consumer Price Indices for January 2009 and January 2013).[3][4]

Budget process

New York operates on an annual budget cycle. The sequence of key events in the budget process is as follows:[5][6]

  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.

In New York, the governor has line item veto and item veto of appropriations authority.[6]

The governor is constitutionally required to submit a balanced budget. In turn, the legislature is required by statute to pass a balanced budget.[6]

Expenditures

Definitions

Although each state executes its budget process differently, the National Association of State Budget Officers (NASBO) breaks down state expenditures into four general categories. This allows for comparisons among the 50 states. NASBO's categories are as follows:[7]

  • General fund: "The predominant fund for financing a state’s operations. Revenues are received from broad-based state taxes. However, there are differences in how specific functions are financed from state to state."
  • Other funds: "Expenditures from revenue sources that are restricted by law for particular governmental functions or activities. For example, a gasoline tax dedicated to a highway trust fund would appear in the “Other funds” column. For Medicaid, other state funds include provider taxes, fees, donations, assessments, and local funds."
  • Federal funds: "Funds received directly from the federal government."
  • Bonds: "Expenditures from the sale of bonds, generally for capital projects."

2013 expenditures

Breakdown of expenditures in FY 2013.
Source: National Association of State Budget Officers

The table below breaks down expenditures for fiscal year 2013 (comparable figures from surrounding states are provided to give additional context).[7] Figures for all columns except "Per capita expenditures" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the column labeled "Per capita expenditures" have not been abbreviated.

Total state expenditures, FY 2013 ($ in millions)[7]
State General fund Federal funds Other funds Bonds Total Per capita expenditures**
New York $58,960 $38,574 $32,305 $3,258 $133,097 $6,773.00
Delaware $3,659 $1,783 $3,281 $439 $9,162 $9,896.85
Maryland $15,119 $11,811 $8,909 $1,135 $36,974 $6,236.32
New Jersey $31,618 $12,485 $6,735 $1,247 $52,085 $5,852.68
Pennsylvania $27,761 $24,144 $15,175 $800 $67,880 $5,314.00
**Per capita figures are calculated by taking the state's total expenditures and dividing by the number of state residents according to United States Census estimates.[8]
Source: National Association of State Budget Officers

Expenditures by function

Breakdown of expenditures by function in FY 2012.
Source: National Association of State Budget Officers

State expenditures in New York can be further broken down by function (elementary and secondary education, public assistance, etc.). Fiscal year 2012 data is included in the table below (information from neighboring states is provided for additional context). Figures are rendered as percents, indicating the share of the total budget spent per category.

Expenditures by function, FY 2012 (as percents)[7]
State Elementary and secondary ed. Higher ed. Public assistance Medicaid Corrections Transportation Other
New York 19.8% 7.6% 2.8% 29.4% 2.3% 6.2% 31.8%
Delaware 24.6% 4.5% 0.3% 15.9% 3.0% 8.9% 42.9%
Maryland 19.5% 14.5% 3.7% 21.5% 4.3% 9.9% 26.5%
New Jersey 24.7% 7.8% 0.9% 21.6% 3.2% 9.3% 32.4%
Pennsylvania 18.4% 2.8% 1.9% 33.2% 3.5% 9.3% 30.8%
Source: National Association of State Budget Officers

Expenditure trends

From 2008 to 2012, expenditures on elementary and secondary education, public assistance and corrections decreased, with corrections expenditures decreasing the most at 0.6 percentage points, a 20.7 percent decrease in the share of the budget. During that same time period, expenditures on higher education, Medicaid and transportation increased, with Medicaid increasing the most at 2.7 percentage points, a 10.7 percent increase in the share of the budget since FY 2008. The table below details changes in expenditures from 2008 to 2012.[7][9][10][11][12] Figures are rendered as percents, indicating the share of the total budget spent per category.

Expenditures from 2008 to 2012 (as percents)
Year Elementary and secondary ed. Higher ed. Public assistance Medicaid Corrections Transportation Other
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%
2008 20.9% 7.1% 3.1% 26.7% 2.9% 5.6% 33.6%
Change in % -1.10% 0.50% -0.30% 2.70% -0.60% 0.60% -1.80%
Source: National Association of State Budget Officers

Revenues

2013 revenues

Breakdown of general fund revenue sources in FY 2013.
Source: National Association of State Budget Officers

The table below breaks down general fund revenues by source in fiscal year 2013 (comparable figures from surrounding states are also provided to give additional context).[7] Figures for all columns except "Per capita revenue" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the column labeled "Per capita revenue" have not been abbreviated.

Revenue sources in the general fund, FY 2013 ($ in millions)[7]
State Sales tax Personal income tax Corporate income tax Gaming tax Other taxes and fees Total Per capita revenue**
New York $11,232 $40,227 $6,253 $18 $2,461 $60,191 $3,062.98
Delaware $0 $1,084 $206 $0 $2,440 $3,730 $4,029.17
Maryland $7,686 $4,075 $873 $0 $2,324 $14,958 $2,522.93
New Jersey $8,460 $12,193 $2,454 $1,118 $6,697 $30,922 $3,474.64
Pennsylvania $8,968 $11,472 $2,492 $89 $5,801 $28,822 $2,256.34
**Per capita figures are calculated by taking the state's total revenues and dividing by the number of state residents according to United States Census estimates for 2013.[8]
Source: National Association of State Budget Officers

Revenue trends

The table below details the change in revenue sources in the general fund from 2009 to 2013.[7][9] Figures for all columns except "Per capita revenue" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the column labeled "Per capita revenue" have not been abbreviated.

Revenue sources in the general fund, New York ($ in millions)[7][9]
Year Sales tax Personal income tax Corporate income tax Gaming tax Other taxes and fees Total Per capita revenue**
2013 $11,232 $40,227 $6,253 $18 $2,461 $60,191 $3,062.98
2012 $11,126 $38,767 $5,760 $17 $2,398 $58,068 $2,966.27
2011 $10,782 $36,209 $5,279 $17 $2,509 $54,796 $2,809.66
2010 $9,871 $34,752 $5,371 $19 $2,041 $52,054 $2,683.44
2009 $10,269 $36,840 $5,556 $22 $2,521 $55,208 $2,825.17
Change in % 9.38% 9.19% 12.54% -18.18% -2.38% 9.03% 8.42%
**Per capita figures are calculated by taking the state's total revenues and dividing by the number of state residents according to United States Census estimates.[8][13]
Source: National Association of State Budget Officers

State budgets by year

DocumentIcon.jpg See budget bill: 2014 Enacted Budget Financial Plan

Fiscal year 2014

Governor Andrew Cuomo proposed his FY 2014 state budget on January 22, 2013.[14]

The governor's proposed $142.6 billion budget was a 5.3 percent increase over the FY 2013 budget, including federal funds for recovery from Hurricane Sandy and the enactment of the federal health care law. Without that federal money, the increase in state operating funds would be 1.6 percent.[14]

The enacted budget was comprised of a number of budget bills. Gov. Cuomo exercised a number of line item vetoes and vetoes of appropriations before signing the bills into law.[15] The budget included $61.2 billion for the General Fund, an increase of 3.73 percent from FY 2013.[16]

Fiscal year 2013

See also: New York state budget (2012-2013)

Fiscal year 2012

See also: New York state budget (2011-2012)

Fiscal year 2011

See also: New York state budget (2010-2011)

Fiscal year 2010

See also: New York state budget (2009-2010)

Historical spending

State budget historical spending below was compiled by the National Association of State Budget Officers. Figures reflect the reported "Total Expenditures" in Table 1. Figures for all columns are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000).[7][10]

Historical state budget spending in New York ($ in millions)
Fiscal year General Fund Other funds Federal funds Bonds Budget totals
Total % of Budget Total % of Budget Total % of Budget Total % of Budget
2011-2012 $56,489 42.3% $32,843 24.6% $40,311 30.2% $3,861 2.9% $133,504
2010-2011 $53,313 40.2% $31,163 23.5% $44,707 33.7% $3,582 2.7% $132,765
2009-2010 $54,262 42.1% $30,578 23.7% $40,834 31.7% $3,263 2.5% $128,937
Averages: $54,688 42% $31,528 24% $41,950.67 32% $3,568.667 3% $131,735.33
General Fund: The predominant fund for financing a state’s operations. Revenues are received from broad-based state taxes. However, there are differences in how specific functions are financed from state to state.
Other funds: Expenditures from revenue sources that are restricted by law for particular governmental functions or activities. For example, a gasoline tax dedicated to a highway trust fund would appear in the “Other funds” column. For Medicaid, other state funds include provider taxes, fees, donations, assessments, and local funds.
Federal funds: Funds received directly from the federal government.
Bonds: Expenditures from the sale of bonds, generally for capital projects.

State debt

According to a January 2014 report by the nonprofit organization State Budget Solutions, New York had a state debt of over $387 billion. Its state debt per capita was $19,799. The report revealed that state governments faced a combined $5.1 trillion in debt, 33 percent of annual gross state product. The obligation amounts to $16,178 per capita in the nation. A bulk of the state debt -- 79 percent -- was linked to unfunded public pensions.[17][18]

Total state debt in New York[19]
Type Totals U.S. rank
Total state debt $387,465,667,000 2
Per capita debt $19,799 6
State and other fund expenditures $89,332,000,000 23

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 precent funding level experts recommend. Consequently, Pew designated the state's pension system as a "solid performer."[20]

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

States sometimes sell general obligation bonds to investors in order to finance large-scale undertakings (e.g., road construction and other public works projects). Credit rating agencies, such as Standard and Poor's, assign grades to states, evaluating their ability to pay the principal and interest on such bonds. Standard and Poor's grades range from AAA, the highest available, to BBB, the lowest. Generally speaking, a higher credit rating indicates lower risk for an investor, which in turn lowers costs for taxpayers.[21]

The table below lists the Standard and Poor's credit rating for New York from 2001 to 2012 (grades from surrounding states are provided for additional context).[21]

S&P credit ratings from 2001 to 2012
New York Delaware Maryland New Jersey Pennsylvania
2012 AA AAA AAA AA- AA
2011 AA AAA AAA AA- AA
2010 AA AAA AAA AA AA
2009 AA AAA AAA AA AA
2008 AA AAA AAA AA AA
2007 AA AAA AAA AA AA
2006 AA AAA AAA AA AA
2005 AA AAA AAA AA AA
2004 AA AAA AAA AA- AA
2003 AA AAA AAA AA AA
2002 AA AAA AAA AA AA
2001 AA AAA AAA AA+ AA

Federal aid to state budget

See also: Federal aid to budgets in the 50 states

The chart below notes how much of the state’s general revenues come from the federal government. Figures were calculated by dividing each state’s federal intergovernmental revenue into its general revenue. The number in the rightmost column indicates the state's ranking in relation to the rest of the nation (e.g., if "1," the state receives the highest percentage of federal funding in the nation). Figures from neighboring states are included to provide additional context.[22]

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.[22]

Federal aid to state budgets in 2012
State Federal aid as % of general revenue Total federal aid (in millions) National rank
New York 32.78% $48,699 28
Delaware 24.46% $1,814 45
Maryland 30.25% $10,031 33
New Jersey 26.25% $13,413 42
Pennsylvania 30.63% $20,481 32

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.[23]

Budget transparency

Transparency evaluation
Open Book New York Project Sunlight
Searchability Y
600px-Yes check.png
Y
600px-Yes check.png
Grants N
600px-Red x.png
N
600px-Red x.png
Contracts Y
600px-Yes check.png
Y
600px-Yes check.png
Line item expenditures N
600px-Red x.png
N
600px-Red x.png
Dept./agency budgets Y
600px-Yes check.png
N
600px-Red x.png
Public employee salaries N
600px-Red x.png
N
600px-Red x.png
Last evaluated in 2010.
See also: Evaluation of New York state website and Constitutional provisions regarding reading of bills

Listed below are several transparency resources on New York government spending. The first two are government sponsored, and the third is sponsored by the Empire Center for New York State Policy.

Government tools

The table to the right is helpful in evaluating Open Book New York and Project Sunlight.

Limitations and Suggestions for Improvements

Public employee salaries should be placed online, as should specific spending details and line-item expenditures.

Multi-measure budget transparency profile

The Institute of Government and Public Affairs at the University of Illinois created a multi-measure transparency profile for New York, which measured state transparency as of September 2011 using indicators from a range of organizations. These indicators measured both website transparency and other recognized facets of governmental transparency. In addition, IGPA presented four unique indicators of non-transparency based on the observation that transfers or reassignments between general and special funds can obscure the true fiscal condition of a state.[24][25]

IGPA devised a budget transparency index based on information available from the National Association of State Budget Officers. New York tied for fourth in the nation with two other states, earning seven out of eight possible points.[25]

New York - IGPA score for budget process, contents and disclosure
Budget transparency indicator Yes or no?
Performance measures
{{{1}}}
"Generally Accepted Accounting Principles" budget
{{{1}}}
Multi-year forecasting
{{{1}}}
Annual cycle
{{{1}}}
Binding revenue forecast
{{{1}}}
Legislative revenue forecast
{{{1}}}
Non-partisan staff
{{{1}}}
Constitution or statutory tax/spend limitations N
600px-Red x.png
TOTAL 7

In addition to the individual state profile, IGPA offers a 50-state comparison and profiles for other states.[25]

U.S. PIRG "Following the Money" report

See also: Following the Money 2014 Report

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.[26] According to the report, New York received a grade of B+ and a numerical score of 88, indicating that New York was an "advancing" state in terms of transparency regarding state spending.[26]

Accounting principles

See also: New York government accounting principles

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 found here. The State Comptroller is New York State's chief fiscal officer.[27]

The Institute for Truth in Accounting (IFTA) rates New York “tardy” in filing the state’s Comprehensive Annual Financial Report (CAFR) – the annual report of state and local governmental entities. IFTA rated 22 states timely, 22 states tardy, and six states as worst. IFTA did not consider New York's CAFRs, and those of the other states, to be accurate representations of the state’s financial condition because the Generally Accepted Accounting Principles (GAAP) basis did not include significant liabilities for the pension plans and for other post employment benefits, such as health care.[28] New York's CAFRs are prepared and published online by the New York Comptroller.[29]

Contact information

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

See also

External links

Additional reading

References

  1. Refers to General Fund spending. Typically in state budgets the General Fund is spending that is most directly controlled by state legislators.
  2. This figure is derived by calculating the percent difference between the prior two years' spending levels according to the National Association of State Budget Officers.
  3. Bureau of Labor Statistics, "CPI Detailed Report Data for February 2014," accessed April 9, 2014
  4. InflationData.com, "Cumulative Inflation Calculator," February 28, 2014
  5. National Conference of State Legislatures "State Experiences with Annual and Biennial Budgeting," updated April 2011
  6. 6.0 6.1 6.2 National Association of State Budget Officers "Budget Processes in the States, Summer 2008," accessed February 21, 2014
  7. 7.0 7.1 7.2 7.3 7.4 7.5 7.6 7.7 7.8 7.9 National Association of State Budget Officers "State Expenditure Report, 2011-2013," accessed February 21, 2014
  8. 8.0 8.1 8.2 United States Census Bureau, "Annual Estimates of the Resident Population: April 1, 2010 to July 1, 2013," accessed February 26, 2014
  9. 9.0 9.1 9.2 National Association of State Budget Officers, "State Expenditure Report, 2009-2011," accessed February 24, 2014
  10. 10.0 10.1 National Association of State Budget Officers, "State Expenditures Report, 2010-2012," accessed February 24, 2014
  11. National Association of State Budget Officers, "State Expenditure Report, 2009," accessed February 24, 2014
  12. National Association of State Budget Officers, "State Expenditure Report, 2008," accessed February 24, 2014
  13. United States Census Bureau, "Vintage 2009: Annual Population Estimates," accessed February 26, 2014
  14. 14.0 14.1 The New York Times, "Cuomo Builds Proposed Budget With Cuts, Gambling and Fees," January 22, 2013
  15. Open New York, "New York State Budget Vetoes: 2013-14," accessed April 30, 2014
  16. Open Budget, "New York State 2014 Enacted Budget Financial Plan," May 2013
  17. State Budget Solutions, "State Budget Solutions' Fourth Annual State Debt Report," January 8, 2014
  18. Washington Examiner, "EXography: Unfunded public employee pensions drive state debts skyward," January 21, 2014
  19. State Budget Solutions "State Budget Solutions' Fourth Annual State Debt Report," January 8, 2014
  20. Pew Center on the States, "Widening Gap Update: New York," June 18, 2012
  21. 21.0 21.1 Stateline: The Daily News Service of The Pew Charitable Trusts, "Infographic: S&P State Credit Ratings, 2001-2012," July 13, 2012
  22. 22.0 22.1 United States Census Bureau, "State Government Finances: 2012," accessed February 24, 2014
  23. Recovery.gov, "Stimulus Spending by State," accessed February 21, 2014
  24. Institute of Government and Public Affairs at University of Illinois, "Home page," accessed February 21, 2014
  25. 25.0 25.1 25.2 Institute of Government and Public Affairs at University of Illinois, "Budget Transparency Profiles - All 50 States," September 2011
  26. 26.0 26.1 U.S. Public Interest Research Group, "Following the Money 2014 Report," accessed April 15, 2014
  27. The New York Office of the State Comptroller Website, accessed November 2, 2009
  28. Institute for Truth in Accounting, “The Truth About Balanced Budgets—A Fifty State Study,” Page 35
  29. New York Office of the State Comptroller Website, accessed November 2, 2009