New York City’s adopted $119.7 billion fiscal year 2026 budget is currently balanced (including pre-payments) but there are significant concerns over funding from Washington and slowing economic growth that could jeopardize its financial position and discretionary programs if greater preparation is not taken. The City must make balanced and prudent fiscal choices in the coming year while managing its substantial operational needs and encouraging employment and business growth to enhance its economic and tax revenue base.

New York State’s Financial Plan shows a growing structural budget deficit with a cumulative three-year budget gap of $34.3 billion, as forecasted by the Division of the Budget. The gap is up $7 billion since the January release of the Fiscal Year 2026 Executive Budget Financial Plan, and is attributable to downward revisions to the economic forecast and projected revenues, as well as increases in projected spending.

This report examines healthcare professional shortages in 16 rural counties throughout New York, looking at a range of professionals, including those practicing primary care, dental health and mental health. Shortages exist in all counties examined, and some counties have no pediatricians or Ob/Gyn doctors at all. The ability to access health care is an essential quality of life issue. Without access, rural New Yorkers may have worse health outcomes, and if unaddressed, shortages will get worse.

Sales tax collections for local governments and other local taxing entities in New York State totaled $11.9 billion in the first half of 2025, up 3.7 percent ($423 million) over the same period last year. Over the past few years, since the end of the dramatic pandemic-related swings in collections from 2020 to 2022, first-half sales taxes are showing similar patterns of growth as in the years following the recession-related dip in 2009. All of the state’s 10 regions saw year-over-year growth in first-half collections.

In State Fiscal Year 2024-25, the Office of Unclaimed Funds returned a record $633 million to rightful owners, a 25% increase over the previous year.

New York State agency overtime costs increased 10.2% in 2024 for a total of $1.3 billion, while the number of overtime hours increased by 7.8%, or 1.8 million hours higher than the previous year. This was the second year in a row the workforce increased to an average annual total of 151,309, but headcount is still below where it was in 2019 and markedly lower than 15 years ago when it was over 177,000.

Despite having the fourth-largest construction sector in the nation, New York State is one of five states that have not recovered from pandemic job losses and a full recovery may take some time as construction businesses in New York City continue to face a variety of challenges, including softer demand for office space. This report provides an update to the Office of the New York State Comptroller’s report that found the COVID-19 pandemic had an outsized impact on the construction sector in New York City. 

Proposed federal changes to the Supplemental Nutritional Assistance Program (SNAP), the nation’s largest program helping households obtain food, would increase costs to state governments, limit eligibility and reduce the value of future benefits. As an essential safety net program, SNAP benefits have traditionally been funded by the federal government; the proposed changes could weaken the program and lead to increased food insecurity in New York and nationally.