Reports

With the 2010-11 State Budget now six weeks late, local governments and school districts are struggling to budget and plan for the upcoming year. Under these circumstances, there is the distinct possibility that aid payments will be delayed and some localities may have to resort to short-term borrowing until they get paid by the State.

Over the last several years, OSC has increased its oversight of IDA operations through audits and performance reports. The Comptroller also began suspending State tax exemption powers for IDAs that failed to file financial reports. Additionally, the Public Authorities Reform Act that became effective in March 2010, will further enhance IDA transparency by requiring additional reporting on governance, operating structure and financial condition.

IDA Projects in 2008 - .xls

While the State ended State Fiscal Year (SFY) 2009-10 with a positive General Fund balance and all restricted reserves intact, this was accomplished because the Executive delayed $1.1 billion more in payments than had been anticipated in February.

The General Fund is the main operating fund of the State and is traditionally used to measure the State’s projected budget deficit.

The nation is slowly emerging from the worst recession since the Great Depression, but the recovery is expected to be slow and uneven. Although the national economy grew at 5.9 percent during the fourth quarter of 2009, the strong growth could not offset the deep contractions that occurred in the first half of the year. As a result, the economy contracted by 2.4 percent in 2009, the largest annual decline in 63 years.

The need for fiscal reform in New York State could not be more compelling. Despite significant spending cuts and revenue increases proposed in the Executive Budget, New York State still faces major projected budget gaps in future years—a cumulative three-year General Fund budget deficit that could exceed $30 billion through State Fiscal Year (SFY) 2013-14.

New York State has relied far too heavily on debt for far too long. Ten years after enacting legislation to slow the growth in borrowing and end the use of debt for fiscal gimmicks, New York continues to rely heavily on debt. A

New York’s dairy farms are a vital part of the upstate economy. Dairy industry losses in local communities have a ripple effect throughout their economies, negatively impacting local businesses that provide supplies or services to dairy farms, and the property and sales tax base.

The Executive Budget released in January 2010 proposed to roll the projected $500 million current year General Fund deficit into State Fiscal Year (SFY) 2010-11.

The Executive has proposed a spending plan for State Fiscal Year (SFY) 2010-11 that relies heavily on recurring spending cuts and revenue actions to produce a cash balanced budget, including provisions to roll a projected current year deficit forward.

In the wake of the events of September 11, 2001, the Metropolitan Transportation Authority (MTA) initiated intense planning efforts to determine how to best protect its customers and key assets from any future terrorist incident.

School districts across New York state, including New York City, face a potential funding gap of at least $2 billion when the American Recovery and Reinvestment Act funding runs out in 2011-12 unless federal aid is renewed or replaced by State aid.

View a district-by-district breakdown of ARRA funding - .xls

The nation is emerging from the worst recession since World War II. While New York City was hit hard, the impact has not been as severe as initially feared or as painful as elsewhere in the nation. The City has lost 125,000 jobs, and the November Plan assumes that job losses will peak at 220,000 during the third quarter of 2010—fewer losses than in either of the past two recessions.

New York State has already been forced to take extraordinary measures to meet its existing obligations in State Fiscal Year (SFY) 2009-10. The decline in revenue associated with the most severe recession since the Great Depression and the State’s continuing failure to address its worsening structural budget imbalance have combined to create a severe cash flow crunch.

This Report on Estimated Receipts and Disbursements for State Fiscal Year (SFY) 2009-10 through SFY 2011-12, issued pursuant to Chapter 1 of the Laws of 2007, is intended to facilitate continuing discussion of the State’s economic condition and the State Budget.

The Comprehensive Annual Financial Report for the New York State and Local Retirement System (the System or NYSLRS) for the fiscal year ended March 31, 2009.

The State of New York continues to face serious challenges to its fiscal health. The State has continued on the unsustainable course of making recurring spending commitments that are not backed by recurring revenues, and it continues to rely heavily on debt.

The MTA’s commuter railroads, bridges, and tunnels have been largely restored to a state of good repair, with some exceptions. The subway system has made substantial progress, but there is a large backlog of needed investments.

The Comprehensive Annual Financial Report for the State of New York for the fiscal year ended March 31, 2009.

This report analyzes historical trends in local capital spending and the current condition of our local infrastructure. It suggests some important steps that the State and local governments need to take to improve capital planning within New York. Finally, it suggests some policy options that could help sustain investment in the State’s infrastructure and encourage more coordinated, regional approaches to investment.