New York’s fiscal situation is improving, but much remains to be feared | State and regional news
There are, however, big asterisks for the state budget of $ 208 billion, the largest in history despite Covid. The main one: the unknowable future.
“A snapshot taken today would show the state’s finances are in a strong position: balanced operations and relatively small out-of-year fiscal spreads, larger-than-expected tax collections, relatively low liquidity. high and affordable debt levels, “Hochul’s budget division said last week in a report, delayed as it has been, the results for the first quarter of the state’s fiscal year – April, May and June.
The report was released by Robert Mujica, who so far has remained at work as one of the remnants of the former administration of Andrew Cuomo, who resigned in disgrace last month amid scandals. croissants.
But the budget document, read closely by Wall Street credit rating agencies and other tax observers, quickly warned: âThe risks and uncertainties created by the pandemic are missing from the picture, but very concerning. The report gave hope that the state, unlike the day after the recessions of 2001 and 2008, could this time see “significant structural changes” in its economy.
But no one knows for sure.
To that end, Hochul ordered that higher than expected revenues be deployed in two main ways in the current budget: $ 1.1 million in the reserve fund accounts for rainy days and the economic uncertainties of the State, and $ 650 million to reduce borrowing by employing a pay-as-you-go system. the you go approach for certain expenses.