ALBANY, NY | In response to Governor Hochul’s State of the State, Fiscal Policy Institute Director Nathan Gusdorf released the following statement:
“While the Governor outlined an agenda that accurately highlights many of the challenges facing New Yorkers, she remained silent on the deep investments needed to reverse New York’s affordability crisis and ensure the state’s long-term fiscal stability. The greatest threat to New York’s economic future is the affordability crisis that is pushing working- and middle-class families out of state — a crisis that will only be solved through sustained investments in housing, education and healthcare that anchor people here.
“While a shrinking middle-class workforce poses a risk for the state’s economic future, New York’s current fiscal indicators are stable and show that the State could significantly increase public investment. Revenues have returned to normal rates after a year of Covid surpluses, the State recently cut the budget gap in half, and New York’s high earning population continues to grow — all signs of fiscal stability. While constrained spending may appear fiscally wise in the short-term, the State’s long-term economic competitiveness depends on strengthening the public programs and infrastructure that sustain New York’s workforce.
“We look forward to reviewing the Governor’s budget and financial plan for more details on the initiatives outlined today.”
Size of First Outyear Budget Gap
As percentage of general fund spending