Tax & 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 [...]

2024-12-19T09:19:58-05:00January 9th, 2024|Fact Sheets, State Budget, Tax & Budget|
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Testimony on Mayor’s November Financial Plan

December 11, 2023 Submitted to the New York City Council Committee on Finance Good morning — I am Andrew Perry, Senior Policy Analyst at the Fiscal Policy Institute, a nonpartisan research organization committed to improving public policy to better the economic and social conditions of all New Yorkers. Overview: New York City faces real fiscal strain in the current fiscal year and next year. However, projected gaps are the result of an unexpected and temporary fiscal shock – the [...]

2024-12-19T09:19:58-05:00December 11th, 2023|City Budget, Reports, Briefs and Presentations|
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Who is Leaving New York State? Part I: Income Trends

A groundbreaking new report from the Fiscal Policy Institute, “Who Is Leaving New York State? Income Trends” reveals for the first time that the richest New Yorkers are far less likely to move out of New York than working and middle-class New Yorkers in normal, non-Covid years. While this pattern temporarily changed during Covid, when all households earning over $170,000 significantly increased their likelihood of moving out of state, migration trends reverted to normal in 2022.

2024-12-20T00:05:54-05:00December 5th, 2023|Migration, Must Read, Press Releases, State Budget, Tax Policy|
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Latest Census Data Confirms New York Losing Residents to Neighboring States with Lower Housing Costs

New Census data revealed that New York State lost a net total of 244,100 people in 2022. The latest Census data, which details state-to-state migration patterns, confirms the Fiscal Policy Institute's prior findings: New Yorkers are primarily moving to neighboring states with a lower cost of living, and in particular, lower housing costs. Meanwhile, less than half of New Yorkers are leaving for low tax states. This data confirms State fiscal policy should focus on turning New York into a place where people can afford to live and raise families — from investing in universal childcare and high-quality public education to affordable housing and reliable public transit. Conversely, budget cuts or underfunding will only hinder New York's economic recovery. Increasingly unaffordable housing and childcare, combined with shrinking state services, will continue to drive both individuals and businesses out of our state.

2024-12-19T09:19:59-05:00October 20th, 2023|Migration, Press Releases, Tax Policy|
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Breaking Down the Fiscal Impact of City Aid to Migrants

In August 2023, the City updated its cost estimates for providing shelter and support to asylum seekers, adding $2.33 billion in expected City costs in the current fiscal year (FY24) and $4.1 billion in the next fiscal year (FY25). The 15% PEG announced in September 2023 would result in a $9.6 billion cut in the current fiscal year (FY24) and a $9.7 billion cut in the next fiscal year (FY25).

2024-12-19T09:19:59-05:00September 12th, 2023|City Budget|
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Mind the Gap: When are State Budget Gaps a Concern?

New York’s fiscal year 2024 Enacted Budget Financial Plan, released June 2023, projected budget shortfalls for fiscal years 2025 through 2027. While future budget gaps are a perennial feature of New York’s budget forecasts, the most recent projected gaps exceed those generally projected in times of greater economic stability, aligning instead with gaps projected during economic downturns. These projections must be interpreted, however, in light of an improving economic outlook as well as the inherent uncertainty of fiscal forecasting.

2024-12-19T09:19:59-05:00September 5th, 2023|Blog, FPI in the News, Policy & Research, Reports, Briefs and Presentations, State Budget, Tax & Budget|
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FPI: Recent Investment Firm Relocations Unlikely to Result in State Tax Loss

FOR IMMEDIATE RELEASE: August 23, 2023 Media Contact: press@fiscalpolicy.org FPI: Recent Investment Firm Relocations Unlikely to Result in State Tax Loss “These business decisions are unlikely to have a noticeable effect on the state’s tax revenues” ALBANY, NY — Fiscal Policy Institute Executive Director Nathan Gusdorf today released the following statement: “A recent article stated that New York State lost ‘$1 trillion in assets’ due to a number of asset management firms moving their headquarters out [...]

2024-12-19T09:20:00-05:00August 23rd, 2023|Press Releases, State Budget|
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July Cash Receipts Remain Steady for Third Straight Month

Three months of strong tax receipts confirm State economy remains robust & align with improving economic forecasts ALBANY, NY | August 16, 2023 — The State Comptroller released its July Cash Report today, showing that July tax receipts came in over projections and over July 2022 levels:July 2023 receipts: $7.75 billionJuly 2023 projections: $6.87 billionJuly 2022 receipts: $6.97 billionFollowing the cash report release, Fiscal Policy Institute Executive Director Nathan Gusdorf released the following statements:  What the cash [...]

2024-12-23T11:21:04-05:00August 16th, 2023|Financial Plans & Cash Reports, Press Releases|
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June Cash Receipts Continue to Stabilize Following April Volatility

The New York State Comptroller's June cash basis report shows that tax receipts for the month of June have stabilized after a shortfall in April. The stable June receipts confirm that New York’s tax base and economy remain strong, and that shortfalls in April reflected weaker-than-expected capital gains in tax year 2022 rather than an imminent downturn.

2024-12-18T12:24:13-05:00July 14th, 2023|Financial Plans & Cash Reports, Press Releases|
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