The state’s economy is doing well and jobs continue to grow, but Comptroller Tom DiNapoli’s office has concerns about the long-term balance of the state budget, a report released Tuesday by Comptroller Tom DiNapoli found.
The blame is large part is placed on the effect of federal policies, which have led to making it harder to predict tax revenue.
The report pointed to the budget relying on $8.3 billion in temporary resources. The budget, as usual, relies heavily on revenue from the personal income tax. The current fiscal year spending plan counts 64 percent of its revenue from the tax, which is at the mercy of economic volatility. Projects from the personal income tax have varied from year to year due to federal tax law changes.
“While New York’s economy continues to expand, gains in jobs, personal income and wages are projected to slow,” DiNapoli said. “The Enacted Budget plan addresses risks such as downturns in tax receipts and federal aid, but other, more unpredictable impacts on state revenues may require more action. While rainy day funds were increased, building more robust reserves should be a top priority.”
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