Last Tuesday, State Comptroller Tom DiNapoli released his annual “Quick Start’ report, which projects that the state’s tax revenues will grow by 2.5 percent to $90.1 billion in state fiscal year 2014-15. The report is required under the Budget Reform Act of 2007.
“Overall economic growth in New York State is projected to remain modest in 2014, and while Wall Street is expected to remain profitable, it is still adapting to a changing regulatory and economic environment. Progress has been made over the last three budgets, however, policy makers will continue to be challenged to align recurring spending and revenue.”
Last Friday, the state’s Division of Budget released a quarterly state spending plan update. The update shows that the state is expected to have a $1.74 billion deficit for the upcoming 2014-15 fiscal year, and budget gaps of $2.9 billion for the 2015-16 and 2016-17 fiscal years.
The update notes that the state could have a budget surplus in the future if the state continues to hold to its self-imposed 2 percent cap on spending.
“The combination of effective budget management and adherence to the 2 percent spending benchmark is expected to further improve the State’s fiscal position. Based on current operating projections, if the State enacts balanced budgets that hold State Operating Funds disbursements to 2 percent, the State will have operating surpluses.”