Tax & Budget

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.

Andrew Perry2024-12-26T17:14:31-05:00March 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?

Emily Eisner2024-12-18T16:04:38-05:00March 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.

Michael Kinnucan2024-12-18T15:58:18-05:00March 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.

Fiscal Policy Institute2024-12-19T09:19:56-05:00March 15th, 2024|Featured on Home, Must Read, Reports, Briefs and Presentations, State Budget|

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.

Fiscal Policy Institute2024-12-19T09:19:57-05:00March 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.

Fiscal Policy Institute2024-12-19T09:19:57-05:00March 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.

Fiscal Policy Institute2024-12-19T09:19:57-05:00March 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

Fiscal Policy Institute2024-12-19T09:19:57-05:00February 13th, 2024|Featured on Home, Policy & Research, State Budget|

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

"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 | In response to the New York City Preliminary Budget for Fiscal Year 2025, Fiscal Policy Institute Director Nathan Gusdorf released the following statement: “Given the City’s improving fiscal outlook, the Mayor’s continued budget cuts are both unwarranted and fiscally irresponsible. “Improving tax receipts and new State aid, combined [...]

Fiscal Policy Institute2024-12-19T09:19:57-05:00January 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 [...]

Fiscal Policy Institute2024-12-19T09:19:57-05:00January 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 [...]

Fiscal Policy Institute2024-12-19T09:19:57-05:00January 16th, 2024|Fact Sheets, Featured on Home, Must Read, State Budget|

FPI on State of the State: NY’s Long-term Economic Competitiveness Depends on Deepening Investments that Sustain Workforce

FOR IMMEDIATE RELEASE: January 9, 2024 Media Contact: press@fiscalpolicy.org June Cash Receipts Continue to Stabilize Following April Volatility New York’s current fiscal indicators are stable & show State could significantly increase public investment Current $4.3 billion FY25 budget gap falls within routine range that resolve without major policy intervention ALBANY, NY | In response to Governor Hochul's State of the State, Fiscal Policy Institute Director Nathan Gusdorf released the following [...]

Fiscal Policy Institute2024-12-19T09:19:58-05:00January 9th, 2024|Press Releases, State Budget|

Update: FY25 State Budget Gap Reflects Stable Fiscal Condition, Not Crisis

January 9, 2024 Toplines The November financial plan made significant revisions to the FY25 budget gap — shrinking the gap from $9.1 billion to $4.3 billion, resulting in more routine gaps. The current FY25 budget gap of $4.3 billion is a moderate, not extreme, budget gap. Moderate outyear budget gaps are generally the result of conservative revenue estimates intended to ensure fiscal stability. Conservative budget forecasting is a sound fiscal practice that protects against economic downturns — not a [...]

Fiscal Policy Institute2024-12-19T09:19:58-05:00January 9th, 2024|Fact Sheets, State Budget, Tax & Budget|