New York's projected budget gaps for the next three fiscal years now total nearly $32 billion as state spending grows faster than revenue, according to a report from state Comptroller Thomas DiNapoli. The report said the state plans to use more than $1 billion from its General Fund balance to help keep the current budget balanced.
The enacted state budget projects $277 billion in total spending for the 2027 fiscal year, an increase of $18.1 billion, or 7%, from the prior year. Projected revenue rises by $2.8 billion, or 1.1%, to $269.8 billion.
The three-year gap estimate covers fiscal years 2028 through 2030 and is $4.1 billion higher than the estimate in the January executive budget plan. DiNapoli's office said negotiated changes added costs that were partly offset by updated forecasts and other resources.
The report identified school aid and Medicaid as major drivers of spending growth. It also noted expanded child care, support for local governments and $1 billion in utility-related tax rebates in the enacted budget.
DiNapoli said federal funding changes affecting health care and nutrition programs add uncertainty while state reserves remain unchanged. He urged the state to strengthen rainy-day reserves and address the gap between recurring spending and revenue.
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