New York state spending declined for a second year in fiscal year 2012-13, while debt reached an all-time high of $63.5 billion.
That’s according to a new report on the state’s financial condition that New York State Comptroller Thomas DiNapoli released today.
DiNapoli’s report found total state spending dipped 0.3 percent, or $407 million, compared to the prior year.
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Still, state spending has grown 9.5 percent since 2009, outpacing inflation, the report found.
New York has borrowed $17.8 billion since 2009, including $3.5 billion in 2013, to “partially” handle its payment obligations, DiNapoli noted.
State-policy decisions in the past three years have helped New York “better align” state spending with revenue, but “difficulties remain,” DiNapoli said in a news release.
“The aim should be to build on the progress made and put New York state on a truly sustainable fiscal path. While short-term financial results appear positive, the fact that we are still dependent on temporary resources means the long-term outlook remains challenging,” DiNapoli explained.
New York was the second most indebted state behind California and ranked fifth among all states in debt per person. State-funded debt outstanding equaled $3,246 per person, or 6.2 percent of personal income, the DiNapoli report said.
State-funded debt service totaled $7.1 billion in 2012-13. DiNapoli’s office expects the figure to grow to $8.6 billion by 2018.
The report also found tax receipts totaled $66.3 billion in 2013, an 11 percent increase since 2009.
In addition, public health and education spending accounted for nearly 68 percent of total state spending.
DiNapoli’s report also indicates that state, local, and federal Medicaid costs rose to $51.2 billion during 2012-13, which is up from $44.3 billion four years ago.
Contact Reinhardt at ereinhardt@cnybj.com
