Policy Brief: Federal Funding Cuts Could Cause Significant Budget Woes For NYS

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

Briefing on Mayor de Blasio’s FY 2018 Preliminary NYC Budget

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.

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

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

New York State Economic and Fiscal Outlook FY 2018

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.

Image of BB coverThis 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.


2017 State Budget Briefing in NYC

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.

Expanding Access to Driver’s Licenses

January 31, 2017. New York City Comptroller Scott M. Stringer, the New York Immigration Coalition, the Fiscal Policy Institute, elected officials and immigration advocates today the release of new analyses of the fiscal costs and benefits of expanding access to driver’s licenses to all New Yorkers, without regard to immigration status, and the launch of a new campaign announced, Green Light NY: Driving Together. The announcement of the campaign comes from advocates and elected officials as Comptroller Stringer and the Fiscal Policy Institute release comprehensive reports highlighting the significant social and economic benefits of extending driving privileges to undocumented immigrants. The analyses found that the policy change would help support immigrant families by expanding job opportunities, while modestly lowering insurance premiums for all state drivers and improving public safety on roadways, with the fiscal costs of implementing the proposal more than offset by added revenues. The Comptroller’s report documented these findings for New York City, while the report from the Fiscal Policy Institute notes the impact of these benefits across upstate New York.

To see the Comptroller’s full report, click here.

View the full report from the Fiscal Policy Institute, here.

PDF of Press Release

Expanding Access to Driver’s Licenses: How Many Additional Cars Might Be Purchased?

January 31, 2017. If a policy was implemented allowing all age eligible immigrants, regardless of immigration status, to obtain a license, the Fiscal Policy Institute estimates that 97,000 additional cars would be purchased and registered in about a three year period, a one percent increase in the total number of vehicles in the state.

An innovative analysis compares the vehicle ownership rates in households that include an unauthorized immigrant with other immigrant households. The comparison adjusts for household income, number of adults per household, and the “take-up rate” for unauthorized immigrants getting licenses. Click here to view the full brief and the number of additional vehicles by region, including New York City, Long Island, Lower Hudson Valley, and Northern and Western New York.

Take-Up Rates for Driver’s Licenses

January 31, 2017. How many unauthorized immigrants actually get licenses when driver’s license policies are expanded to allow them to apply?

The Fiscal Policy Institute looks at the experience of five states and the District of Columbia, and finds that, based on these examples, between 25 percent and 50 percent of unauthorized immigrants over the age of 16 obtain a license in the first three years.

PDF of Brief

New York State Would Receive $57M Revenue Boost if Undocumented Immigrants Had Driver’s Licenses, Reports Show

January 30, 2017. FPI and New York City Comptroller, Scott Stringer, released two separate reports examining the economic benefit of granting driver’s licenses to undocumented immigrants.

Letting unauthorized immigrants in New York City get driver’s licenses would generate $9.6 million in fees for the state’s coffers, boost car sales and lower insurance premiums, a new analysis by City Controller Scott Stringer found.

The statewide effects of such a policy would be $57 million a year in total revenue for all levels of government, according to another report by the Fiscal Policy Institute set to be released Tuesday along with Stringer’s study.

Here’s the link to the New York Daily News.

Immigrants Help Syracuse Grow

January 27, 2017. Immigrants contribute to the economy of the Syracuse metro area, helping it to grow. Immigrants make up 5.5 percent of the population of metro Syracuse, 6.2 percent of the labor force, and an impressive 6.9 percent of total economic output. And, immigrants are a much more diverse group than most people realize.

The largest country of birth for immigrants in metro Syracuse is China, with people born in China making up seven percent of immigrants. Canada may be no surprise as a country of birth for the foreign born, but the next largest countries of birth are Ukraine, India, Italy, Germany, Korea, and Bosnia and Herzegovina.

And immigrants are entrepreneurs: immigrants make up 9 percent of business owners overall, and 18 percent of Main Street business owners—people who own small storefront businesses such as restaurants, grocery stores, beauty salons, or retail shops that can help revitalize commercial corridors and downtown areas.

Click here for a data profile of immigrants in the Syracuse metro area.


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