According to Office of the State Comptroller (OSC) records, there are currently 4,172 local government entities in New York. These include over 1,600 county, city, town and village governments, as well as 697 school districts and 872 fire districts. The nearly 1,000 other local government entities include libraries, community colleges, industrial development agencies and consolidated health districts, among others.

The report is an update to a report on the sales tax first issued in 2006, "Local Government Sales Taxes in New York State." The report highlights new issues related to this important revenue source, including the potential impact of the upcoming 2010 Decennial Census on the share of tax revenues flowing to individual governments.

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.

As local governments address fiscal challenges posed by stagnant or declining State and local revenues, increased demand for social services and growing fixed costs, local government officials should be mindful of the impact that budget decisions can have on the cost of borrowing. These costs can increase significantly if prudent budget decisions are not made within the context of multiyear capital planning.

The meltdown of the national housing market continues to threaten homeowners with foreclosures and reduced home values. Fortunately, New York had fewer subprime mortgages and has fared better than many other states.1 Nonetheless, the decline in home sales and home values is being felt, particularly downstate.

Mirroring a nationwide trend, New York State has been losing manufacturing jobs over the past several decades. However, the remaining manufacturing base contains some bright spots that demonstrate the potential for an economic resurgence in New York.

Local sales tax collections, including New York City, increased by 10.6 percent during the first half of 2010 compared to the same period the year before. About half of this growth is due to sales tax rate increases and the extension of the sales tax to additional items.

The Office of the State Comptroller administers the Justice Court Fund (JCF), a sole custody fund established in 1944 into which the revenues generated by the State’s 1,246 town and village justice courts are deposited.

New Yorkers plan to spend up to $192 million for back-to-school supplies this year, with approximately 64 percent of this spending ($123 million) driven by school supply lists from their children’s schools.

As New York State struggles to meet the challenges of its current fiscal crisis, State policy makers must find ways to encourage growth in various sectors of the State’s economy to ensure the long-term fiscal health of the State. Small businesses – including those owned by minorities and women – are a vital part of that economy.