New York state budget (2009-2010)
Fiscal Year 2010
- See past state budgets
The most recent figures from the New York Division of the Budget show FY 2010 has a $3.2 billion deficit and FY 2011 will have a $7 to$8 billion shortfall. The governor has estimated a $9 billion shortfall. Gov. Paterson advocates quick action from the New York State Legislature at a special session starting Nov. 10 on his proposed two-year, $5 billion Deficit Reduction Plan (DRP), which purports to close the current-year gap and cut the combined projected $10 billion deficit in half. DOB revisions from the July 2009 estimate of $2.1 billion deficit for the current fiscal year to $3.2 billion is mostly due to declining income tax collections and $106 million increase for projected spending. In total, year to date income tax collections for FY 2010 are $4.4 billion less, 22% than FY 2009. The "surcharge on high-income individuals" passed during the regular legislative session to help bridge New York's original $1.7 billion budget gap has not produced the anticipated $4 billion, instead 10% less at $3.6 billion.
|Gov. Paterson's Oct. 15, 2009 Deficit Reduction Plan||FY 2010||% of Plan|
|Across-the-board Local Assistance Cuts||$1.3 billion||44%|
|Across-the-board State Agency Cuts||$500 million||17%|
|Tax Amnesty||$250 million||8%|
|Battery Park City Authority Fund Transfer||$300 million||10%|
|Aqueduct VLT Payment||$200 million||7%|
|Medicaid Fraud||$150 million||5%|
|Additional Admin. Savings||$145 million||5%|
|RGGI ($90M)/EPF ($10M) Transfer||$100 million||3%|
|DASNY Transfer||$26 million||1%|
Through the end of the fiscal year the Financial Plan projected more than $1.7 billion would be transferred to the General Fund from dedicated State funds. In addition, at least $1.4 billion in temporary loans remained outstanding, $3.1 billion in General Fund spending off-loads were shifted to the HCRA funds and nearly $200 million in new debt was issued to replace pay-as-you-go capital spending.
The initial phases in creating the state budget begin long before the fiscal year to which it applies. Every summer, the Division of the Budget (DOB) sends a call letter to state agencies that sets out the Governor’s priorities for the year, anticipated fiscal constraints and a schedule for submitting budget requests. The DOB is responsible for analyzing agencies' requests and aiding the Governor in creating the final state budget. 
Agencies usually submit their budget requests to the DOB by early fall. The DOB and State Comptroller must release a detailed estimate of anticipated income and expenses by November 5. The DOB evaluates the budget requests in light of trends in income and spending, assesses the state’s economic situation and presents their recommendations to the Governor.
By mid-January (or February 1st following a gubernatorial election year), the Governor must submit his budget plan to the legislature along with related appropriation, revenue and budget bills.  Along with the Executive Budget, the Governor must submit the State’s Five-Year Financial Plan, Five-Year Capital Program and Financing Plan, and any financial information supporting the Executive Budget.  The legislature then analyzes the Governor’s proposals, holds public hearings and works with the DOB in evaluating the proposed budget measures.  Both houses of the legislature must agree on the income and spending appropriations in the budget bill and submit the amended budget to the Governor for his approval.  The budget is then sent to the Governor for approval, and a final state budget is created for the upcoming fiscal year.
In approving the final state budget, the Governor may use a line-item veto to cancel out specific provisions without having to veto the bill in its entirety.  The state legislature can override the Governor's veto only by a 2/3 vote by the members of each house.
The Office of the State Comptroller audits state agencies, public authorities, and all local governments in New York State, including New York City. The Comptroller's audit reports are published online. Thomas P. DiNapoli has been New York State Comptroller since February 2007. The State Comptroller is New York State's chief fiscal officer. The breadth and scope of its responsibilities are unique among the states including:
The Institute for Truth in Accounting (IFTA) rates New York “Tardy” in filing the state’s Comprehensive Annual Financial Report (CAFR) – The annual report of state and local governmental entities. IFTA rated 22 states timely, 22 states tardy, and 6 states as worst. IFTA does not consider New York's CAFRs, and those of the other states, to be accurate representations of the state’s financial condition because the Generally Accepted Accounting Principles (GAAP) basis does not include significant liabilities for the pension plans and for other post employment benefits, such as health care. New York's CAFRs are prepared and published online by the New York Office of the State Comptroller FY 2009's CAFR has been completed and publicly posted timely.
New York government spending is partially transparent and currently has several transparency resources as listed below. The first two are government sponsored, while the third is sponsored by the Empire Center.
- www.openbooknewyork.com was created by State Comptroller Thomas DiNapoli
- Project Sunlight was created by State Attorney General Andrew Cuomo
- www.seethroughny.net was created by the Empire Center for New York State Policy
- See also: Evaluation of New York state website
The following table is helpful in evaluating the level of transparency provided by a state spending and transparency database:
|State Database||Searchability||Grants||Contracts||Line Item Expenditures||Dept/Agency Budgets||Public Employee Salary|
|Open Book New York|
Limitations and Suggestions for Improvements
Public employee salaries should be placed online, as should specific spending details and line-item expenditures.
The Times Herald-Record offers this analysis of public salaries in the Hudson Valley with a searchable database of payroll records.
A great resource is See Through NY, a new website offering "New Yorkers a clearer view of how their state and local tax dollars are spent."
Economic Stimulus Transparency
- The state will approximately $2 billion from the federal government under :: H.R. 1586, a $26 billion plan to give states money for Medicaid and education that the President signed into law on August 10, 2010. U.S. Sen. Charles Schumer said New York is to get $2 billion in Medicaid funding from Washington that was feared lost and over $600 million in new education aid to avoid teacher layoffs.
- New York received an estimated $11,798,038,219 from the American Recovery and Reinvestment Plan of 2009 
- The economic recovery website to show how legislators and government officials in New York are spending Federal funds is available here.
Error in ARRP
On November 16 and 17, 2009, many errors were found in the $747 billion plan that showed the plan set aside money for districts that do not exist. According to Recovery.gov, the plan shows its funds will go to 884 Congressional Districts, though there are only 435.
New York has 29 Congressional Districts, but it's 00 District produced 31 jobs after taking home $3.8 million in stimulus funds. District 00 typically stands for the population of a whole state when the state has only enough population to have an at-large representative. In total, the ARRP website attributed 11 extra, non-existent Districts to New York and gave them a total of $12,025,926 to "create/save" 128.2 jobs.
General Fund 2009-10
|Category||FY2009 Amount in millions Actual||FY 2010 Amount in millions Estimated|
|Budget Stabilization Fund||0||0|
Fiscal 2010 Tax Collections Compared With Projections Used in Adopting Fiscal 2010 Budgets (Millions)
|Sales Tax Original Estimate||10,390|
|Sales Tax Current Estimate||10,005|
|Personal Income Tax Original Estimate||37,239|
|Personal Income Tax Current Estimate||34,380|
|Corporate Income Tax Estimate||5,495|
|Corporate Income Tax Estimate||5,688|
Cuts made to FY2010 budget after passage (in millions)
Changes Over 20 Years
In 20 years, the state budget has grown from to $48.9 billion to a projected $136.5 billion.
The State University of New York has grown by 14 percent over the last two decades, and the workforce of the state judiciary has increased by 31.6 over that period.
- State Budget Solutions, New York
- 2010-11 Executive Budget
- Model transparency legislation from the American Legislative Exchange Council is available at this link.
- Empire Center for New York State Policy
- Manhattan Institute for Policy Research
- ↑ Center on Budget and Policy Priorities,"Policy Points: Recession Still Causing Trouble for States," November 19, 2009
- ↑ Politics on the Hudson,"State Ends Year With Operating Deficit and Little In the Bank," December 31, 2009
- ↑ National Conference of State Legislatures, “State Budget Update: July 2009”
- ↑ New York Division of the Budget Press Release, "Governor Paterson Announces State Must Address $10 Billion Budget Deficit Over Next Two Years," October 30, 2009
- ↑ Cite error: Invalid
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- ↑ 6.0 6.1 6.2 6.3 6.4 Division of the Budget, Division of the Budget Review
- ↑ 7.0 7.1 7.2 7.3 7.4 7.5 Division of the Budget, Legislative Action
- ↑ The New York Office of the State Comptroller Web site, retrieved November 2, 2009
- ↑ Institute for Truth in Accounting, “The Truth About Balanced Budgets—A Fifty State Study,” Page 35
- ↑ New York Office of the State Comptroller Web site, retrieved November 2, 2009
- ↑ State of Indiana, “State Credit Ratings-as of June 24, 2009"
- ↑ Businessweek "Cash-strapped NY, public schools may get windfalls" Aug. 11, 2010
- ↑ 
- ↑ $6.4 Billion Stimulus goes to Phantom Districts, Watchdog.org, November 17, 2009
- ↑ Stimulus Creates Jobs in Non-Existent Congressional Districts, Watchdog.org, November 16, 2009
- ↑ New York, Watchdog.org, November 17, 2009
- ↑ 17.0 17.1 17.2 National Governors Association and National Association of State Budget Officers Fiscal Survey of States June 2010
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