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.
Local sales tax collections, including New York City’s, increased by 10.5 percent during the first three quarters of 2010, compared to a 9.0 percent decline in the same period the year before. However, over a third of this growth is due to sales tax rate increases and the extension of the sales tax to additional items in New York City and Nassau County. Adjusting for these tax increases, the growth in sales tax collections to date in 2010 has been about 6 percent.
Local sales tax collections grew by 9.9 percent in 2010 compared to 2009, when sales tax collections declined by 6.0 percent. However, nearly a third of this growth was due to a sales tax rate increase in New York City.
The 2011-12 Executive Budget proposes a $1.5 billion net cut in State aid to schools, which would result in a 7.3 percent decrease in aid to districts statewide, translating to a 2.9 percent reduction to total general fund budgets.
This report describes the fiscal challenges facing school districts in New York State. As with other classes of government, school districts have struggled to maintain fiscal balance in the midst of rising costs and declining economic conditions.
