GENEVA, N.Y. — New York State Comptroller Thomas DiNapoli offered his thoughts on the state of the economy during a visit to Ontario County on Thursday.
“It’s definitely a more challenging economic climate," DiNapoli said.
As the economic outlook seems to be growing dimmer, the comptroller came to support a company that’s expanding. DiNapoli was part of the celebration for the expansion of RealEats, a farm-to-table food preparation and delivery service.
“Small businesses are the backbone of the state’s economy and many of them have struggled,” DiNapoli said. “Some of them went out of business, so certainly the ones that are still in business we need to be supporting.”
Fueled by the In-State Private Equity Investment Program, RealEats not only survived the pandemic, but thrived. The business became so popular that it moved into a large facility in Geneva, headed up by founder and CEO Dan Wise.
“We were feeding a whole lot of people real food that they were enjoying,” Wise said. “It was part of the nutrition program for a lot of people during a time when health was a big concern. And we were proud to be a part of it. We think that we were able to win the hearts and minds of customers at that time. And it gave us a really big boost in terms of sales.”
DiNapoli’s visit comes a day after his announcement that local sales tax collections in New York state increased 16.7% in May compared to May 2021. It’s a sign consumers are not slowing down their spending despite the shaky outlook for the economy.
“There’s been contradictory signals with the economy and, obviously, with what's just happening now with the Fed raising the interest rate,” DiNapoli said. “[There is] still more to tell as we go through the next few months.”
Small businesses are coping with inflation, a rise in the unemployment tax and an increase in interest rates. The Federal Reserve announced on Wednesday its largest rate increase in close to 30 years. It’s fueled by skyrocketing prices at the pumps.
"I don't think anybody is sure what the timing will be, if there'll be a recession,” DiNapoli said. “But certainly, what's happening with the markets and the interest rates going up, probably going up again, is creating a lot of dislocation."
The comptroller said the state is more prepared than it was several months ago because the state’s reserves have been built up and he said the governor is urging caution.
“The governor has already signaled to her department heads, be careful about your spending, hasn't ordered across-the-board reductions, it may come to that,” DiNapoli said. “But for now, the revenues are coming in still higher than projected. But there's a lot of uncertainty out there.”
The wavering economy is leaving many small business owners wary.
“I get nervous with inflation,” Wise said. “At the same time, I'm encouraged by the fact that people are eating more healthy real food for less money.”
“It's a very precarious situation right now,” DiNapoli said. “I think everybody acknowledges that… How long this will last? Going back several months ago the experts said inflation is a temporary blip. Well, obviously, they were wrong. How long this will last? We don't know yet.”
And because of the unknown, the advice from the comptroller on spending?
"Caution is appropriate,” DiNapoli said.
DiNapoli, a Democrat, is running for re-election. Republican Paul Rodriguez is running against the incumbent for the New York state comptroller's seat.