The estimated $237 billion Enacted Budget for State Fiscal Year 2024-25 increases spending for vital state services like Medicaid and school aid and includes new funding and policy changes to spur the creation of much needed housing, but the State’s financial outlook includes several risks. At the State level, certain revenue streams that have been critical to maintaining budget balance are either scheduled to expire or be depleted in the years ahead, meaning current spending levels will be difficult to sustain.

Nearly one in five New York children live in poverty, and rates are significantly higher in some of New York's largest cities. With the 2021 Child Poverty Reduction Act, New York has set a goal to reduce child poverty by 50% by 2031 and has taken action in recent State budgets. The State and federal government have the solutions to lift more children out of poverty, and policymakers should act with urgency to use them.

Local sales tax collections in New York state increased by 1.5% in April compared to the same month in 2023. Overall, local collections totaled $1.76 billion, up $26.1 million from the same time last year.

Regional Table [xlsx]

The MTA’s capital program for maintaining and upgrading the regional transit system faces significant delays due to potential funding shortfalls caused by the late implementation of congestion pricing. The MTA should explain how it intends to prioritize its needs so that its choices do not result in disinvestment in the system, noting that bringing riders back would be one of the most direct routes for the MTA to reduce its debt burden over the long term.

New York City’s full-time government workforce is expected to increase for the first-time year-over-year since the COVID-19 pandemic. However, high turnover and vacancy rates exist at several City agencies. The City should continue efforts to increase and expedite hiring where needed to ensure critical agencies and departments can meet demands and provide quality services to residents.

Food insecurity is increasing in New York, with one-in-nine households (11.3% or 875,000 families) unable to get enough food at some point during 2020 through 2022 because they lacked money or other resources. Nationally, food insecurity increased for the first time in over a decade to 11.2% during 2020 through 2022. With the end of the pandemic, many of the enhancements to federal safety net programs also ended. Additional federal and state efforts are needed to address food insecurity.

Local government sales tax collections in New York State totaled $5.6 billion in the first calendar quarter of 2024, up 1.6 percent (or $87.3 million) compared to the same quarter last year. While this marked the lowest rate of growth since the same quarter in 2021, it is important to note that where were several quarters of under 2 percent growth in the two decades prior to the pandemic. New York City’s 3.2 percent increase in first quarter collections was responsible for nearly all statewide growth.