November 11, 2022
Several weeks ago the NYS Council shared our concerns with members regarding the state’s delay in releasing several key financial updates/documents and specifically, the second quarter or mid-year financial update (discussed below). Pundits speculated that the reason for the delay was likely the (then) tight race Governor Hochul was in against Republican Candidate Lee Zeldin, and the bad news that was coming in the midyear update. The Report was due at the end of October. It was released today.
Also, we still haven’t seen the Division of Budget ‘Call Letter’ – a communication from the NYS Budget Director to state agencies that instructs them on the parameters for preparation of their state agency budget proposal for review by DoB. The communication (below) from our government relations firm about the 2nd Q Update released today, along with the screen shot I took recently (attached) that summarizes the 1st Quarter Update, should help provide a picture of how NYS is doing as we continue to live within the financial plan that is based on the April 2022 enacted state budget.
Below please find the NYS Division of the Budget’s Mid Year Update which is linked here in its entirety at NYS DIVISION OF BUDGET MID YEAR UPDATE . While the Update details a slight increase in revenues, the NYS Budget Director has laid a out a clear message stating: “This update to the State’s financial plan reinforces what was known from the prior one – global and national economic headwinds will have an impact in every state of the country, but New York is prepared with fiscally responsible budgeting that puts record-level deposits and balances into our reserves,” said Budget Director Robert F. Mujica, Jr.
STATE OF NEW YORK
DIVISION OF THE BUDGET
KATHY HOCHUL, GOVERNOR
ROBERT F. MUJICA JR., DIRECTORFOR IMMEDIATE RELEASE:
November 11, 2022
Division of the Budget Issues Mid-Year Update to Enacted Budget Financial Plan
Latest Projections Consistent with Prior Plan Update SFY23 Still Projected to End in Surplus
Compared to First Quarter Update, Disbursements Slightly Down, Receipts Slightly Up, General Fund Cash Balance Up, and Out-Year Gaps Slightly Smaller
The Division of the Budget has issued the mid-year update to the New York State Enacted Budget Financial Plan. The update shows projections consistent with the prior update, with the State still projected to end FY23 with a surplus and a record-high general fund cash balance. The document is available on the DOB website here.
Compared to the first quarterly plan update issued in August, the mid-year update projects FY 2023 disbursements (spending) slightly down, receipts (revenue) slightly up, the general fund cash balance slightly up, and future budget gaps unchanged or smaller than previously projected.
“This update to the State’s financial plan reinforces what was known from the prior one – global and national economic headwinds will have an impact in every state of the country, but New York is prepared with fiscally responsible budgeting that puts record-level deposits and balances into our reserves,” said Budget Director Robert F. Mujica, Jr.
The plan update highlights the uncertainty of the current global and national affairs as making local state projections particularly challenging at this time, noting that “The Financial Plan is subject to economic, social, financial, political, public health, and environmental risks and uncertainties, many of which are outside the ability of the State to predict or control. As with the prior plan update in August, the COVID-19 pandemic, the war in Ukraine and other geopolitical uncertainties, and actions by the Federal Reserve are cited as examples of elevated risks for the fiscal outlook of the State.
The plan update also highlights the security provided by Governor Hochul’s record investments into the State’s reserve funds. According to the plan update issued today, reserves in FY 2025 are projected to exceed the multi-year projected budget gaps by roughly $6.5 billion.