New York has one of the nation’s highest debt levels, largely because measures to restrict the excessive use of debt have been circumvented over the years in State budgets. This report identifies policy and fiscal weaknesses that have allowed State debt to grow to troubling levels and offers a roadmap for State debt reform to improve debt affordability and protect New York’s fiscal health.
This report provides the public detailed information about State and local public authorities and makes recommendations to improve transparency and eliminate use of backdoor borrowing and debt gimmicks that seek to weaken or circumvent debt limits.
New York City’s fiscal year (FY) 2023 budget is projected to rise to $109.4, after transfers, but City finances could come under pressure amid a slowing economic recovery and an increase in demand for City services. For the upcoming FY 2024 preliminary budget, State Comptroller DiNapoli urges the City to provide a realistic and transparent view of the City’s revenue and expenses and take actions to close out-year gaps while maintaining critical services.
More than two years after the height of the COVID-19 pandemic in New York City, young people are still facing double-digit unemployment. There are currently over 70,000 unemployed young workers in the City, nearly two times as many as in 2019. Young men are struggling the most with nearly 24% remaining unemployed, significantly higher than in the rest of New York State and the nation.
The Metropolitan Transportation Authority (MTA) has long faced difficulties closing projected budget gaps, which have been exacerbated by the pandemic, necessitating an unprecedented level of federal funding to maintain service operations. The MTA had been previously encouraged to examine cost and revenue efficiencies but those alone are unlikely to close the more than $2.5 billion annual gap that will remain when federal pandemic relief is exhausted in 2025, forcing the MTA to lay out savings and revenue options for its stakeholders to consider.
Attrition outpaces hiring among New York City’s municipal workforce, which could have an impact on critical City services and programs. The City’s full-time workforce declined by 19,113 employees over the last two years, the largest decline in staffing since the Great Recession of 2008. Despite the City hiring over 40,000 new employees in the last fiscal year, City job vacancies stand at more than 21,000.
The Office of the State Comptroller (OSC) prepares this report as part of the “Quick Start” process established in State Finance Law. The report includes revenue and spending projections through SFY 2024-25.
Ten years ago, Superstorm Sandy made landfall in New York, causing catastrophic devastation to Long Island and New York City. One of the key organizations involved in the recovery and the planning of responses to future climate events is the MTA, whose assets were substantially impacted by the storm. This analysis tracks MTA’s progress on projects focused on rebuilding and strengthening elements affected by Superstorm Sandy and discusses what more can be done to better protect the system from new disasters.
Over the last year, the fiscal position of the MTA has deteriorated, as transit ridership continued to lag at the low end of the authority’s projections. The MTA has two years to bring back riders and rebuild fare revenue before federal aid runs out. In the meantime, it must develop plans to cover budget gaps that start at $2.5 billion in 2025.
The American Rescue Plan Act of 2021 provided $350 billion in additional fiscal relief to address the continued impact of COVID-19 on the economy, public health, and the finances of state and local governments, individuals and businesses. This report examines how New York City and other local governments across the country used the first of two partial payments of these funds, totaling nearly $224 billion.
