Historic relief funds from the federal government, provided in response to the COVID-19 pandemic, boosted New York’s per capita balance of payments from Washington from second-to-last in federal fiscal year 2019 to 40th in 2020. During this period, New York received $1.59 for every tax dollar paid to Washington, an increase from 91 cents from the prior year, but still below the national average of $1.92.
Although New York City was an early epicenter for COVID-19, only 45.6 percent of firms in the City received Paycheck Protection Program (PPP) loans, below the national average of 50.9 percent.
New York State’s population increased by 2.1 percent between 2000 and 2010 – the fifth slowest rate of growth among all states nationwide. Gains or losses in population cause a shift in the local tax base, drive adjustments in State and federal revenue allocations, and influence the demand for municipal services and infrastructure.
Federal aid is a critical component of local government revenues. Proposed changes to federal education policy, expanded military spending and the Executive Order declaring "sanctuary jurisdictions" ineligible for some federal grants could also affect New York's local governments. This report and the accompanying interactive data use information reported by local governments to help local officials and citizens understand how they could be affected by such changes.
Over the past year, financial firms have written off hundreds of billions of dollars in bad debt, which has resulted in a loss of confidence and a destabilization of the financial markets.
Absent Congressional action, significant revisions to federal tax and spending policies are scheduled to take effect in January 2013.
The Executive Budget for State Fiscal Year (SFY) 2013-14 was released by the Executive on January 22, 2013. On February 21, the Executive submitted final amendments to the proposed budget, to supplement the 21-day amendments previously released.
The fiscal relationship between the federal government and the states has been a topic of debate since the founding of our nation.
The President and leading members of Congress are pushing to enact major changes in our federal tax code. Before any such measures become law, we need to make sure that taxpayers and policy makers understand the implications for New Yorkers.
As the President and Congress push for changes on both the spending and revenue sides of the federal budget, the stakes for New York State are high.
