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The Education Debate

Support for local school districts is New York’s largest single spending program, accounting for more than one-quarter of State spending. After fast spending growth over the last three years, the fiscal year 2025 executive budget aims to curb school aid spending growth. The legislative budget proposals would roll back the executive budget’s proposed cuts to school aid and provide additional support for public higher education. This funding would preserve the current scope of New York’s education system, rather than representing transformative new investments.

Nathan Gusdorf2024-04-18T13:54:45-04:00March 26th, 2024|Education, Featured on Home, Policy & Research, State Budget, Tax & Budget|

This Year’s Housing Debate

Housing has again become a key area of negotiations in the current budget cycle. This year’s executive budget laid out a far narrower plan to address New York’s housing affordability crisis than last year’s budget proposal. Meanwhile, the Senate brought forward a new set of housing policy recommendations in its one-house budget proposal, attempting to comprehensively address the housing supply and affordability issues that currently plague the state. But what are these proposals — and are they enough to address New York’s housing crisis?

Nathan Gusdorf2024-04-18T13:55:01-04:00March 26th, 2024|Featured on Home, Housing, Policy & Research, State Budget, Tax & Budget|

The Medicaid MCO Tax Strategy

The legislative one-house budgets come out firmly for higher Medicaid spending, restoring most of the governor’s cuts and offering significant rate increases. But how will they pay for it? The Senate and Assembly budget memos propose to raise $4 billion a year through an obscure mechanism: A tax on Medicaid managed care plans, the private insurance companies which administer most of the state’s Medicaid program.

Nathan Gusdorf2024-09-09T14:18:03-04:00March 19th, 2024|Blog, Featured on Home, Healthcare, State Budget, Tax Policy|

Fiscal Analysis: 2025 Revenue To Exceed Projections by At Least $4 Billion

The DOB’s assumed growth rates for State revenue are unusually low by historical standards, and are out of sync with most forecasts of U.S. economic growth over coming years. FPI expects State revenue growth in fiscal year 2025 will likely exceed current forecasts by at least $4 billion.

Monica Klein2024-09-10T00:07:45-04:00March 15th, 2024|Featured on Home, Must Read, Reports, Briefs and Presentations, State Budget|

One-House Budgets Wisely Raise Taxes On Wealthiest New Yorkers — But Only Temporarily

In light of New York’s affordability crisis and the need for deeper State investments to lower the cost of living, the one-house budgets wisely invest in affordable housing, healthcare, and higher education. Additionally, the legislature sensibly rejects the Governor’s proposed cuts to public schools and home care worker wages.

Monica Klein2024-04-08T12:44:45-04:00March 12th, 2024|Featured on Home, Press Releases|

What to Look for in the One House Budgets

The New York State Senate and Assembly will soon release their proposals for the fiscal year 2025 budget. Following last week’s revenue consensus, the legislature will be able to propose $1.3 billion more in spending than the executive budget. This additional revenue will allow the legislature to restore many of the budget cuts proposed by the executive budget, especially to school aid and home care. The legislature can, however, go beyond restoring the proposed cuts and put forward deeper investments in public services that address New York’s affordability crisis. These investments will require raising additional revenue.

Nathan Gusdorf2024-09-09T14:15:28-04:00March 11th, 2024|Featured on Home, Policy & Research, Reports, Briefs and Presentations, State Budget|

Tax Policy Brief: Fiscal Stability and Progressivity in the Personal Income Tax

New York State often faces calls for higher tax revenue, whether due to concerns over revenue shortfalls or a desire to increase public spending. This brief assesses the soundness of raising revenue through the Personal Income Tax, examining the fiscal stability of such revenue, fundamental fairness considerations, and responses to common arguments against raising the state income tax.

Nathan Gusdorf2024-03-28T20:58:23-04:00March 8th, 2024|Must Read, Policy & Research, Tax & Budget, Tax Policy|

Consensus Economic and Revenue Forecast: Finding Quarters in the Couch Cushions

Over the past five budget cycles, the upward revisions to revenue established at the Economic and Revenue Consensus meeting has ranged from 0.6 percent to 1.9 percent of annual state operating funds. While these numbers may seem small in magnitude, the dollar amounts are significant when compared to current cost saving measures proposed in the fiscal year 2025 executive budget. Annualized revenue adjustments average $972 million over the past 6 budget cycles (excluding 2020) compared to a proposed $454 million in school aid cuts and $600 million in cuts to the homecare program CDPAP in this year’s executive budget.

Monica Klein2024-09-10T12:01:04-04:00March 4th, 2024|Blog, Reports, Briefs and Presentations, State Budget, Tax & Budget|

Fiscal Year 2025 Budget Briefing Book

ALBANY, NY | February 13, 2024 The Fiscal Policy Institute released its annual briefing on the Governor's executive budget. The briefing analyzes state fiscal and economic trends as well as major policy initiatives in the executive budget. Download the Book

Anthony Troia2024-02-22T12:43:06-05:00February 13th, 2024|Featured on Home, Policy & Research, State Budget|

FPI: Mayor’s Continued Budget Cuts Are Unwarranted and Fiscally Irresponsible

FOR IMMEDIATE RELEASE: January 16, 2024 Media Contact: press@fiscalpolicy.org June Cash Receipts Continue to Stabilize Following April Volatility "Improving tax receipts and new State aid, combined with lower asylum seeker costs and the customary use of annual reserves, are more than sufficient to balance next year’s budget" ALBANY, NY | January 16, 2024 — In response to the New York City Preliminary Budget for Fiscal Year 2025, Fiscal Policy Institute Director Nathan Gusdorf released [...]

Anthony Troia2024-01-30T16:06:54-05:00January 16th, 2024|City Budget, Featured on Home, FPI in the News, Press Releases|

FPI: Modest Budget Lacks Deep Investments Needed to Reverse Affordability Crisis & Stem Population Loss

FOR IMMEDIATE RELEASE: January 16, 2024 Media Contact: press@fiscalpolicy.org June Cash Receipts Continue to Stabilize Following April Volatility "Given recent inflation and economic growth, state spending is shrinking slightly relative to the size of the overall state economy" ALBANY, NY | In response to the New York State Executive Budget for Fiscal Year 2025, Fiscal Policy Institute Director Nathan Gusdorf released the following statement: “After months of overly pessimistic revenue projections, the Executive Budget [...]

Anthony Troia2024-01-16T13:20:50-05:00January 16th, 2024|FPI in the News, Press Releases, State Budget|

New: Expiring Tax Rates to Drive Down Expected Fiscal Year 2028 Revenue

By Andrew Perry, Senior Policy Analyst January 2024 Approximately $2.4 Billion of FY28 budget gap will be due to the Personal Income Tax and Corporate Franchise Tax surcharge expirations. In the fiscal year 2022 budget, New York enacted temporary increases to the personal income tax (PIT) and corporate franchise tax (CFT) rates. PIT rates were raised for tax filers with more than $1 million in annual income, and new brackets were created for filers with incomes over $5 million [...]

Anthony Troia2024-01-16T08:22:12-05:00January 16th, 2024|Fact Sheets, Featured on Home, Must Read, State Budget|

State Economic Update: Economy Recovers While Inequality Rises

Despite New York’s aggregate economic strength, the state faces real economic challenges. First, the Covid-19 pandemic induced a sustained decrease in total employment in the State relative to the rest of the country — in other words, while the rest of the United States has recovered and surpassed pre-pandemic employment, New York remains over 100,000 jobs below its pre-pandemic level as of the end of 2023. Second, poverty rates, which reached a 30-year low in 2020, have been climbing since the pandemic — a sign that New York faces real challenges in meeting the needs of its population. And third, New York’s income inequality remains amongst the highest in the country.

Anthony Troia2024-09-10T11:41:26-04:00January 15th, 2024|Economic Outlook|