New York State’s Reserves: A User’s Guide
By Andrew Perry, Senior Policy AnalystSeptember 21, 2023 Key FindingsAll economies go through cyclical upswings and downturns.State treasuries should deposit money into reserve accounts during economic upswings, and spend their reserves during downturns, in order to stabilize public spending.Reserves can allow state expenditures to align with longer-run revenue trends, rather than overspending during growth periods and cutting spending during slowdowns.New York has a large population of high earners who receive substantial income in the form of bonuses, capital gains, and business [...]