As State policymakers responded to the challenges of the COVID-19 pandemic and accompanying volatility in the State’s finances, New York ended the State Fiscal Year (SFY) 2021-22 budget on stable ground. Historic federal financial assistance and improved tax revenues transformed an anticipated budget gap into surplus. This Financial Condition Report can help New Yorkers better understand the impacts of the COVID-19 pandemic and the State and federal policy responses, the ongoing risks and challenges, and opportunities for changes to improve the long-term outlook for State finances.
Federal aid provided 39 percent of the State’s All Funds receipts in SFY 2021-22. Federal funding supports health coverage for nearly 9 million New Yorkers, and plays essential roles in programs including K-12 education, mass transit and social assistance. Critically, the financial plan used more than $17 billion of COVID-19 stimulus funding in SFY 2021-22. In addition, bolstered by tax policy changes, SFY 2021-22 State tax receipts performed better than initially forecast, and were more than $38 billion higher than the prior year.
This report provides information and analysis on the full spectrum of New York State government finances and services, starting with key fiscal indicators for revenue, spending, capital investments and debt. It highlights major issues in programmatic areas ranging from public health to public safety, energy and the environment, K-12 and higher education, transportation and more.
Although the challenges associated with COVID-19 have lessened, we remain in a period of uncertainty and ongoing risk due to the persistence of the virus as well as more recent factors, including the conflict in Ukraine, continued global supply chain disruptions, and high rates of inflation. My hope is that this Financial Condition Report can serve as a resource for New Yorkers as the State emerges from the pandemic and policymakers contemplate the best path forward for New York State.
Thomas P. DiNapoli