In a tradition started by the late Senator Daniel Patrick Moynihan, the Office of the State Comptroller conducts an analysis examining the balance of payments between the individual states and the federal government. This annual report calculates how much each state remits to the federal government via federal tax policy in relation to the amount each state receives back through various avenues of federal spending.
The overall balance of payments among the states is important because it highlights fiscal disparities across states and reveals how federal policies redistribute resources geographically. Understanding this balance helps policymakers and voters assess the impact of federal tax and spending decisions and raises questions about equity, return on taxpayer dollars, and the role of the federal government in each state’s budget.
Comptroller DiNapoli has performed nine such analyses and reports the outcomes for the aggregate amount of dollars and on a per capita basis to adjust for the vast differences in population between states. Negative amounts indicate more tax revenues were remitted than federal resources were received. The results for New York are summarized in the table below.
Historically, New York has been a “donor state,” with a negative balance of payments; in the years preceding the COVID-19 pandemic, New York ranked 49th or 50th on a total dollar basis. Extraordinary federal support provided in response to the pandemic resulted in a positive balance of payments for all states beginning in 2020; as federal pandemic aid began to wind down, some states reverted to being donor states starting in federal fiscal year 2022. When the last of this aid is disbursed, pre-pandemic trends are likely to reemerge.
Just as the federal pandemic assistance had a large impact on traditional patterns of the balance of payments, proposed legislation currently under consideration in Washington may also significantly change the relationship between the federal government and states. The federal budget plays an important role in state budgets and economies, including in the provision of critical services and through the provision of employment and retirement benefits. While all states benefited from pandemic assistance, most states would lose from these actions, although which states will be most impacted cannot yet be determined.
New York's Balance of Payments
| 2013 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|---|---|---|
| Per Capita | ($1,011) | ($2,070) | ($1,216) | ($1,363) | ($1,219) | $7,236 | $7,455 | $1,076 | $912 |
| Rank | 46 | 47 | 47 | 48 | 49 | 40 | 30 | 39 | 42 |
| Total Dollars (billions) | ($19.9) | ($40.9) | ($24.1) | ($26.6) | ($23.7) | $146.2 | $147.9 | $21.2 | $17.8 |
| Rank | 49 | 50 | 49 | 50 | 50 | 4 | 4 | 23 | 24 |
Source: Office of the State Comptroller analysis
The most recent report can be found here: Federal Fiscal Year 2023
Prior editions of the report are available here.