New York Comptroller Thomas DiNapoli has released a new report on the State Fiscal Year (SFY) 2024-25 Enacted Budget Financial Plan, which forecasts a cumulative three-year budget gap of $13.9 billion by the Division of the Budget (DOB).

DiNapoli says action is needed to align projected state spending with revenues and address factors that challenge the state’s finances, economic competitiveness, and ability to offer services effectively over the long term.

“The current economic expansion enabled the state to close the prior fiscal year in a stronger financial position than the Division of the Budget anticipated, reduced outyear budget gaps and allowed for increasing rainy day reserves,” DiNapoli said. “But the structural imbalance in the state’s finances remains. With the state in a relatively stable position, now is the time to be strategic in managing the budget to better prepare for upcoming fiscal challenges and ensure long-term success.”

DiNapoli warns that despite the three-year cumulative budget gap projected decrease, gaps could widen if state spending increases beyond DOB’s projections or economic conditions weaken. 

The report outlines six principles to improve the state’s fiscal outlook — ensure the competitiveness of state tax policy; increase transparency and use of data in budgeting; address spending pressures in school aid and Medicaid programs; use one-time resources for the greatest long-term benefit; strengthen rainy day reserves; and Retiree Health Benefit Trust Fund and reform debt practices.

You can view the entire report on the State Fiscal Year (SFY) 2024-25 Enacted Budget Financial Plan below.