July 24, 2024

Fiscal Policy Institute Director Nathan Gusdorf today released the following statement:

“The First Quarterly Update to the State’s financial plan indicates the State remains on strong fiscal footing, with modestly higher revenue than projected in the Enacted Budget financial plan and lower spending than expected. The State’s general fund, which includes over $30 billion in fiscal reserves, continues to reach record highs, ending the first quarter with $49.6 billion, up $2.1 billion from the level projected in the Enacted Plan.

“Measured as a share of total state personal income, State spending is set to fall, and is on par with its fiscal year 2016 level.

“While the First Quarterly Update states that the loss of congestion pricing does not immediately impact this financial plan, there is no question the looming fiscal crisis facing the MTA due to the lack of congestion pricing revenue is a significant risk for the entire State budget and all commuters in the metro area.”

Fiscal year 2025 first quarter revenue, spending, and general fund, relative to enacted budget projections

Spending as a share of state personal income, fiscal years 2007 to 2025