February 23, 2017. New York State faces gargantuan budget challenges if the current federal administration is successful in pursuing the many cuts in funding to states proposed thus far. In its most recent policy brief, the Fiscal Policy Institute points out that over one-third of New York’s All Funds budget is comprised of federal funds and billions in additional funds are also sent to local governments, schools, and transportation. Altogether, over $70 billion in federal aid flows to the state and its local governments. The policy brief discusses the importance of federal funding and details the broad range of programmatic areas in which the state receives federal categorical funds.

PDF of full Policy Brief

On Friday, March 10, 2017, the Fiscal Policy Institute will present its annual New York City budget briefing to the Economic Justice and Social Welfare Network at the Federation of Protestant Welfare Agencies (FPWA). The briefing presentation will be from 9:30 a.m. to 11:00 a.m. The briefing is open to the public. To register for this free event, please click here.

The topics to be covered during the briefing include:

• An overview of the Mayor’s Preliminary FY 2018 City budget
• NYC’s social and economic context at the beginning of 2017
• The impact of the State budget on NYC
• The potential impact of federal budget cuts on the City, the Health + Hospitals Corporation, NYCHA, and the State

 Note that if you have already registered through the Economic Justice and Social Welfare Network, you do not need to register again.

February 7, 2017. Executive Director Ron Deutsch testified before the Senate Finance and Assembly Ways and Means Committees on the Governor’s FY 2018 Proposed Budget and Financial Plan.

Income inequality, as indicated by the richest 1 percent share of total income, has grown substantially since 1980 in New York State as well as nationally. One of the most sensible tools the state has to address the growing income gap in New York is the millionaires’ tax. The proposed extension of the millionaires’ tax will help narrow the gap, and will also help New York continue to support statewide priorities from education to health care. It will restore some of the revenues lost from tax cuts enacted between FY 2013-15 and the middle class tax cuts enacted in 2016. And, most notably, the continuation of the millionaires’ tax will help offset the regressive nature of New York’s overall state and local tax burden, particularly when paired with enhanced low-income tax credits and additional high-end tax brackets. Read more…

PDF of Complete Testimony

February 7, 2017. In its 27th annual New York State budget briefing book, the Fiscal Policy Institute analyzes and comments on Governor Andrew Cuomo’s FY 2018 Executive Budget.

This year’s New York State budget negotiations take shape against a worrisome backdrop. The president and congress are threatening to dismantle the Affordable Care Act, make drastic cuts to programs that help millions of New Yorkers, and create a hostile environment for the states four million immigrants. The state has an important role to play to help make life better for all New Yorkers—perhaps, as the Simon and Garfunkel song had it, acting as a bridge over troubled water.

We don’t know what lies on the horizon in terms of cuts to federal programs, but we do know that things are going to change, and likely not for the better. The policy ideas advanced by Washington thus far do not bode well for New York State. One-third, or $54 billion, of New York State’s FY 2018 All Funds Budget is comprised of federal funds. Local governments get another $16 billion. The potential for substantial cuts in domestic spending poses gargantuan challenges for the state budget and budgets of local government entities throughout the state.

In this very worrisome political season, the state government can choose to make life better for New Yorkers or to let them be overwhelmed by the troubled waters flowing from the federal government. The state should provide the bridge to a better future.

Executive Summary

PDF of Complete Briefing Book: New York State Economic and Fiscal Outlook 2017-2018

PDF of Financial Plan Brief

PDF of Federal Funding Brief

PDF of New York’s Pronounced Income Inequality and Regressive Tax Structure Brief

PDF of Economic Development Brief

PDF of Education Brief

PDF of Human Services Brief

PDF of Local Governments Brief

PDF of Immigration Brief

PDF of Shared Opportunity Brief

Other resources:

Testimony at the Joint Legislative Public Hearing on the FY 2018 Executive Budget – Taxes

Initial Statement on the Governor’s Executive Budget proposal on January 18, 2017.

Op-ed on potential ramifications of federal budget changes.

On Thursday afternoon, February 16, 2017, the Fiscal Policy Institute will present its New York State budget briefing in New York City at Community Service Society (CSS). Check-in and refreshments will begin at 2:30 p.m. Our presentation begins at 3:00 p.m. and ends at 4:00 p.m. We hope that you and/or members of your staff will be able to join us for what we are confident will be a useful and informative session. You can RSVP online here.

The briefing will examine various aspects of the governor’s Executive Budget including such topics as:

• Income Inequality in New York State: Income inequality has been growing over the past five years in NYS. How do the governor’s budget proposals and our current tax system affect this major problem? We will provide the most recent research and analysis on the issue.
• Millionaires’ Tax: The governor has made the temporary extension of the millionaires’ tax a centerpiece of his Executive Budget proposal. FPI will provide details on how state residents are impacted and the reasons we should not only extend, but expand, this progressive tax. FPI will present an alternative tax proposal to create a more permanent and equitable rate structure for NYS.
• Federal Funding at Risk: With over one-third of our budget coming from the federal government there is great concern as to how policy changes in Washington will impact our state’s finances. Based on current proposals, we will detail the potential impact that federal policy changes could have on health insurance, social services, Medicaid, and taxes, and explore ways to address these potential funding shortfalls.
• Austerity Budgeting/Financial Plan: What are the impacts of continued austerity spending resulting from the governor’s self-imposed 2 percent state spending cap? Is it necessary to continue this austerity spending which will result in billions in unspecified cuts in out-years when incomes and tax receipts are growing faster than 2 percent per year? FPI will provide an analysis of the negative impacts of the cap on state agencies, human services and local governments.
• FY 2018 Executive Budget: What are the major policy issues that the governor addresses in the Executive Budget? What are the glaring omissions in the issues being addressed? What is the overall impact of the governor’s proposed budget on the ability of the state to meet its major social and economic challenges and opportunities such as the exceptionally high child poverty rates in the major upstate cities? We provide our analysis of the governor’s proposals on taxes, education, human services, economic development, housing, local government, minimum wage, and more.
• Shared Opportunity Agenda for New York: FPI will outline progressive public policies that can be adopted to ensure that we create more shared opportunities to help lift New Yorkers out of poverty and provide avenues for upward mobility.

If you have any questions about the February 16th briefing or about any budget or economic policy issues, please contact us by telephone at 518-786-3156 x 7161 or by e-mail at info@fiscalpolicy.org.

Please register by Wednesday, February 15, 2017.