New York's public school system, built in the nineteenth century, entitles New Yorkers aged five to twenty-one to free education. More recently, policymakers, including Governor Hochul and Mayor-elect Mamdani, have committed to finishing the project by extending universal education and care to children under the age of five.
Download full brief Mayor-elect Zohran Mamdani made universal childcare a central plank of his campaign platform, and once inaugurated he is widely expected to push for a deal in this year’s state budget to authorize new taxes to fund the program. While many policy experts have opined on the need for a universal program, little has been written about how it might practically be financed. But the single most decisive factor in whether New York City (or New York State) ends up with a [...]
Download Full Report Executive Summary New York State’s Division of the Budget (DOB) recently published its mid-year budget update, which forecasts considerable budget gaps in the years ahead: an apparently staggering $26.8 billion gap over the next four years before even accounting for the impending losses of federal funding under the so-called “One Big Beautiful Bill Act” (OBBBA). At first glance, this seems like an insurmountable challenge. If the State is facing dramatic deficits before [...]
New Mexico will allow residents of all income levels receive childcare subsidies—what lessons can New York learn? Download PDF Starting November 1, 2025, New Mexico will remove all income limits for its childcare assistance program, allowing New Mexico residents of all income levels to receive childcare subsidies. Currently, income limits are set at 400 percent of the federal poverty level (FPL), meaning only those who earn less than $128,600 per year are eligible. About 30,000 families currently receive childcare subsidies, and [...]
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.
New data released this morning show that inequality is rising in New York, with income gains for the state’s richest residents driving statewide wage growth well above the national average.
Rent Guidelines Board votes to lower range of possible rent increases for 2-year leases Download the Slides Watch the Testimony Last Thursday, FPI’s Chief Economist, Emily Eisner, testified to the Rent Guidelines Board (RGB) of New York City, at the invitation of one of the Board’s Tenant members, Adán Soltren. Dr. Eisner's testimony made the case that current economic conditions and uncertainty regarding federal housing and safety-net policy demand that the RGB [...]
A reduction of $10 billion in federal Medicaid funding would result in the direct loss of over 78,000 jobs in healthcare across the state and over 136,000 additional jobs lost through economic spillovers.
Stagflation is the deadly combination of low growth and high inflation. With the implementation of sweeping and high tariffs by the federal government, most economists and forecasters currently predict something resembling “stagflation” on the Unites States’ economic horizon. But New York may have already entered a period of stagflation: New York’s economy has recovered the jobs lost during the Covid-19 pandemic, but lags the economic growth seen in the rest of the country.
Unemployment insurance stabilizes the state economy during economic downturns, but New York’s UI system has been insolvent for decades and UI benefits are inadequate to keep workers out of poverty.
Population growth, widening inequality, and cost-of-living strains
New York’s economy depends on immigrants, including those without documentation. Deportation of these workers would dramatically decrease affordability and availability of food, homes, and care—all basic needs for New Yorkers.
Census data released last month show that New York’s population growth has returned to pre-Covid patterns, characterized by both overall population growth and affordability pressure driving many working and middle-income New Yorkers to leave the state.
The Fiscal Policy Institute today released a new report in its state migration series, "Who Is Leaving New York State? Social and Labor Characteristics", which finds that affordability — and in particular housing and the cost of raising a family — are increasingly driving State population loss.
Under the fiscal year 2025 executive budget, inflation-adjusted state funding would fall for a third consecutive year. While State spending rose in response to Covid, it will return to its pre-Covid trend by fiscal year 2025.