Report State Budget

NYS Trends During the Cuomo Administration

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October 18, 2018

Governor Andrew Cuomo assumed office on January 1, 2011 and has served two terms.  This policy brief reviews the major demographic, economic, and fiscal trends and describes notable policy changes during his tenure. Data is presented on a statewide basis, and where available, for New York State’s 10 regions. Growth rates are generally based on the year prior to Governor Cuomo taking office; this reflects calendar year 2010, state fiscal year 2011, school year 2010-2011, or federal fiscal year 2011, depending on the data being analyzed. Fiscal year 2019 spending estimates are from the First Quarter Update to the New York State Budget For Fiscal Year 2019. Where available and informative, the State’s performance is benchmarked against national trends or competitor states.

This report is separated into seven sections, which are summarized below:

Demographic and Economic Trends: Since 2010 New York’s population grew at a slower pace than the nation’s. New York City grew more quickly than the rest of the state. Economically, the New York City metropolitan area has prospered, while upstate has faltered. The state allocated more than $28 billion to economic development between fiscal year 2012 and fiscal year 2019.

Fiscal Trends: Governor Cuomo’s first term began when the State was still recovering from the Great Recession, and the state’s fiscal choices appropriately reflected the reality of a lagging economy. In Governor Cuomo’s second term spending growth accelerated, buoyed by increasing tax revenues and $11 billion in financial settlements. Early in Governor Cuomo’s tenure the State adopted reforms to State employee retirement and health insurance benefits and reduced the State workforce, resulting in substantial savings. The workforce has begun to grow again, but the savings from the employee benefit changes continue. Increasing tax revenues have supported increased spending. Some tax rates have been reduced and generally are competitive with other states.

Health: Medicaid spending in New York grew more slowly than in most other states, increasing by approximately 23 percent between fiscal years 2011 and 2019, while enrollment grew by similar rates. Slower growth rates were the result of the reforms adopted by the State’s Medicaid Redesign Taskforce combined with the impact of federal reforms. Despite slow growth, New York’s Medicaid program remains one of the most expensive in the nation as measured by aggregate or per enrollee costs. The State’s uninsured rate is well below national averages and decreased from 12 percent in 2010 to 5.7 percent in 2017.

Education: After declining during Governor Cuomo’s first two years in office, State education aid has grown faster than inflation in every year since. New York’s spending per pupil is almost twice the national average and grew 50 percent faster than the national average since school year 2011; nevertheless, graduation rates trail the national average. New York also provides more financial support for public higher education than the national average, despite increased tuition at public colleges and universities over the last eight years.

Infrastructure: The State’s bridges are in worse condition than national averages, but have improved over the last eight years. Road surfaces have also improved, with 64 percent of state roads rated as excellent or good in 2016, compared to 60 percent in 2011. However, the performance of the Metropolitan Transportation Authority (MTA) has declined significantly. 

Crime and Corrections: In New York and nationally, violent and nonviolent crime rates are down, and the prison population is also declining. At the same time the share of violent inmates in New York prisons and the ratio of corrections officers to inmates have increased.

Energy and Environment: New York’s energy sector is cleaner than the rest of the nation, and since 2010 New York has further decreased pollution, albeit at a slower pace than the nation. Residential electricity costs approximately 40 percent more per kilowatt hour than national averages, but rates declined in New York between 2010 and 2016 while they increased nationwide.

Figure 1: Indexed Population Growth, N.Y. and U.S., 2010-2017
  • New York population growth has lagged the rest of the nation. Since 2010 New York’s population grew from 19.4 million to 19.9 million or 2.3 percent—less than half of the national rate of 5.3 percent.
  • New York experiences more domestic out-migration than in-migration, and the size of this gap has doubled since 2010 from a net loss of 93,712 residents in 2010 to a net loss of 189,413 residents in 2016. Since 2010 New York experienced a net loss of 1 million New Yorkers to other states. Compared to the national average, New York draws more international immigration offsetting the loss in domestic migrants and allowing for total population growth in combination with natural growth.
Table 1: Domestic In- and Out-Migration in N.Y., 2010-2016
  • Per capita personal income in New York in 2017 was $60,991—approximately 21 percent greater than the national average, $50,392.  Income growth slightly outpaced the nation since 2010 (26.7 percent versus 25.1 percent).
Figure 2: Per Capita Income, N.Y. and U.S., 2010-2017
  • Since 2010 New York has gained 1,273,000 private sector jobs. Private employment growth has lagged slightly the national average, growing 11.6 percent between 2010 and 2016 versus 12.1 percent nationally.
Figure 3: Indexed Private Employment Growth, N.Y. and U.S., 2010-2016
  • While New York had a lower share of the population in poverty in 2010 than the nation, poverty rates have declined more quickly nationally than in New York; as a result, a greater share of New Yorkers are now in poverty than nationwide. The share of New York’s population in poverty declined from 14.6 percent to 14.3 percent between 2010 and 2016 while national shares declined from 14.9 percent to 13.7 percent.
Figure 4: Share of Population in Poverty, N.Y. and U.S., 2010 and 2016
  • Population and economic growth vary throughout the state. Six regions experienced population loss. Three regions, the Southern Tier, Mohawk Valley, and North Country, have experienced the most severe stresses: population loss, employment loss, and increased poverty rates. In three regions, Central New York, Western New York, and the Finger Lakes, population has declined but jobs have increased slightly.
  • Three regions, the Capital Region, Long Island, and Hudson Valley, experienced population growth, employment growth, and income growth, but at rates far below those of the nation. In addition, poverty rates increased in the Hudson Valley and on Long Island.
  • New York City’s population growth has been close to the national average, but it has surpassed national rates of employment growth and income growth. While poverty rates have declined, New York City has the state’s highest poverty rate, 18.4 percent, much greater than the national rate of 13.7 percent.
Table 2: Change in N.Y. Regional Population, Employment, Per Capita Income,and Poverty Since 2010
  • Since fiscal year 2012 the State has allocated more than $28 billion to economic development. Most of this, a total of $18.7 billion, has been for tax expenditures for firms that commit to create or retain jobs or make significant capital investments.1
  • A growing share of spending, totaling $8 billion between fiscal years 2012 and 2019, has been allocated by the Department of Economic Development (DED) and the Empire State Development Corporation (ESD). This spending is a mix of specific project incentives awarded to individual businesses and large sums allocated for purposes lacking specific statutory guidance or reporting requirements. The largest projects include the Tesla SolarCity factory ($750 million) and the Moynihan Station development ($276 million). Other large sums include the Upstate Revitalization Initiative, which allocated $500 million each to Central New York, the Finger Lakes, and the Southern Tier, although only $179 million has been spent since 2015.
Figure 5: State Economic Development Incentives, FY 2011 to FY 2019

Spending

  • All Funds spending in fiscal year 2011 was $135 billion and is projected to reach $170 billion in fiscal year 2019, an increase of 26.3 percent, or 3 percent annually. Growth in the second term accelerated rapidly, growing 18.3 percent compared to 6.7 percent in the first term. If the budget had grown at the rate of inflation, it would have been $155 billion in fiscal year 2019, or 14.9 percent larger than fiscal year 2011.
  • All Funds spending includes federal aid, which the State cannot control, and capital funds which provide benefits in more than one year.  State Operating Spending (SOS) excludes these sources and provides a better measure of spending decisions. According to calculations made by the Citizens Budget Commission (CBC) to adjust for reclassifications and timing shifts of cash payments, SOS has grown almost 25 percent, at an average pace of 2.8 percent annually, since fiscal year 2011.2 State leaders met their goal to keep SOS below 2 percent in the early years of the Cuomo administration; however, in the last two years, spending restraint has loosened. Overall, state growth in spending is in line with other states, if not slightly lower.3
Figure 6: NYS Spending Growth and Inflation, FY 2011 to FY 2019

Capital Spending & Debt

  • Capital spending has increased in Governor Cuomo’s second term. Based on estimates in the Adopted Budget, capital spending is projected to reach $14.5 billion in fiscal year 2019 from $7.8 billion in fiscal year 2011. While there is a significant increase in projected spending in fiscal year 2019, annual average growth was 4.5 percent through fiscal year 2018.4
  • The greatest share of the state’s capital plan is devoted to transportation – this includes spending on the state’s highways operated by the Department of Transportation, as well as aid to localities and the Metropolitan Transportation Authority (MTA). An increasing amount has also been dedicated to economic development projects.
Figure 7: NYS Capital Spending by Function, FY 2011 to FY 2019
  • Large projected increases in fiscal year 2019 are in part due to allocations from the Dedicated Infrastructure Investment Fund, which is funded by extraordinary one-time financial settlements.
  • The State relies most heavily on authority bonds and State pay-as-you-go (PAYGO) funds to back capital spending. In fiscal year 2019, authority bonds are projected to fund 50.4 percent or $7.6 billion in capital spending up from 48.5 percent or $4.5 billion in fiscal year 2011. State pay-as-you-go sources are projected to more than double over the period, increasing from $2.1 billion in fiscal year 2011 to $4.4 billion in fiscal year 2019.  Increases to State PAYGO have been enabled by the State’s receipt of settlement dollars. Federal PAYGO funds and general obligation (GO) bonds also support the State’s capital program, but to a smaller extent. 
Figure 8: NYS Capital Financing by Source, FY 2011 to FY 2019
  • As use of State PAYGO capital has increased, State-funded debt and debt service have stabilized over the last nine years. Since fiscal year 2011, state debt outstanding has increased 8 percent from $61.7 billion to $66.7 billion, and debt service has increased 11 percent from $6.6 billion to $7.3 billion, averaging annual growth of 1 percent and 1.3 percent, respectively.5
  • Nevertheless, the debt burden remains high: in 2015, New York ranked 9th in debt per capita and 15th for state debt as a share of state personal income.6

Personnel Spending

  • The State workforce is smaller now than when Governor Cuomo assumed office. The number of full-time equivalent (FTEs) State employees  decreased to a low of 180,000 in fiscal year 2015 and is now approximately 182,000. However, even as FTEs have declined, total personnel expenses have increased 18 percent from less than $20 billion in fiscal year 2011 to an estimated $23 billion in fiscal year 2019.
Figure 9: NYS Employee Count and Total Compensation Costs, FY 2011 to FY 2019
  • The average employee compensation cost, including wages and fringe benefits, is projected to exceed $127,000 annually in fiscal year 2019, an increase of 22 percent since fiscal year 2011.  Salaries and wages comprise $82,000 on average, while fringe benefits are $46,000 and 36 percent of compensation in fiscal year 2019.  Health insurance benefits constitute the largest part of fringe benefits, $23,000 on average, followed by pension benefits, $13,000 on average.
  • Health insurance costs grew most rapidly, increasing 45 percent from $16,200 to $23,456 per employee from fiscal years 2011 to 2019. This compares to medical inflation of 26.5 percent during this period.7
Figure 10: NYS Per Employee Costs, FY 2011 to FY 2019
  • Health insurance costs grew despite changes in premium-sharing arrangements with employees. As part of public collective bargaining agreements negotiated mostly in 2011, employee and retiree responsibility for health insurance premiums increased. The share of premium paid for employees with individual coverage grew from 10 percent to 12 percent for those earning less than $47,000 and 16 percent for those earning more. For those with family coverage, responsibility increased from 25 percent of premium to 27 percent for those earning less than $47,000 and 31 percent for those earning more.8
  • The growth in pension costs has been restrained due to robust investment returns and reforms that make benefits for future employees less costly. State employees receive defined benefit pensions that are established in State law and protected by the State Constitution; in 2011 the Governor and Legislature established a new, less generous tier of benefits for prospective State and local employees known as Tier 6.9 In fiscal year 2017 Tier 6 employees represented 27 percent of state and local membership.10 The State has already realized savings from Tier 6, which will continue to grow over time.
  • While the State’s pension commitments are well funded, its commitments to provide retiree health insurance are not.11 New York’s other postemployment benefits (OPEB) liability grew 61 percent from $57.0 billion to $91.7 billion between fiscal years 2011 and 2017.  The State’s OPEB liability now exceeds $4,700 per New York State resident.

 

Figure 11: Outstanding OPEB Liability, FY 2011 to FY 2017

Revenues and Taxes

  • Since fiscal year 2011 total tax collections have increased by 30.5 percent, even as personal income tax (PIT) and business tax rates have declined. Sales tax rates have remained stable.
  • As part of the fiscal year 2015 budget, New York State adopted a package of corporate tax reforms, which included merging the bank tax and the corporate franchise tax, simplifying sourcing of receipts to customer location, and decreasing the tax rates from 7.1 percent to 6.5 percent. Significant reductions in corporate franchise taxes for manufacturers are being phased-in between 2015 and 2021.
Figure 12: State Tax Revenues, FY 2011 to FY 2019
  • Effective January 1, 2012 the top marginal personal income tax rate decreased from 8.97 percent to 8.82 percent and the threshold increased from $500,000 in adjusted gross income (AGI) for all filers to $2 million for married filing jointly (MFJ), $1.5 million for head of households, and $1 million for single filers. Had the state taken no action, the top rate would have reverted to 6.85 percent. 
  • January 1, 2018 began phased decrease of tax rates imposed below the inflation adjusted $300,000 MFJ tax bracket. Between 2017 and 2025 MFJ marginal rates will decrease as follows: between $26,000 and $40,000 from 5.9 percent to 5.5 percent; between $40,000 and $150,000 from 6.85 percent to 5.5 percent; and $150,000 to $300,000 from 6.85 percent to 6.0 percent.
Table 3: N.Y. Tax Rates for Selected Taxes, 2010 and 2017
  • State taxes are competitive: New York is ranked 20th for state taxes per $100 of income as of 2015.12 The top personal income tax rate is below that of New Jersey and California, but higher than neighboring Pennsylvania and Connecticut. Its top corporate tax and sales tax rates are also below competitor states.  The tax burden becomes less competitive when comparing combined state and local taxes rates.13
Table 4: Tax Rates, N.Y. and Competitor States, 2017

Health

Medicaid

  • Medicaid spending grew from $54 billion to $70 billion between fiscal year 2011 and fiscal year 2019. In New York Medicaid has grown more slowly than in other states: between federal fiscal years 2011 and 2016, Medicaid spending in New York grew 18 percent compared to 35 percent nationwide.14
Figure 13: Growth in Total Medicaid Spending by State, Federal FY 2011 to Federal FY 2016
  • Growth is driven by increases in enrollment, largely due to the Affordable Care Act (ACA). Medicaid enrollment increased consistently from 4.7 million in fiscal year 2011 to 6.2 million individuals in fiscal year 2016. Enrollment declined to 6 million by fiscal year 2018, for a total increase of 28 percent between fiscal years 2011 and 2018.
Figure 14: Average Monthly N.Y. Medicaid Enrollment, FY 2011 through FY 2018
  • The Medicaid Redesign Team (MRT) has created and implemented nearly 400 projects to improve Medicaid while containing costs.15 Over the first five years of the MRT’s operation, per enrollee Medicaid costs in the state decreased by 13 percent from $11,435 to $9,973. However, per enrollee costs began to rise in fiscal year 2017, mostly due to increased spending of federal funds.
Figure 15: N.Y. Medicaid Spending per Enrollee, FY 2011 to FY 2018
  • While cost containment has been effective in recent years, New York’s program remains among the most expensive in the nation on a per enrollee basis. In federal fiscal year 2016, New York’s per enrollee costs were $10,169 compared to a national average of $7,714. Only eight states and the District of Columbia spend more per enrollee.
Figure 16: Medicaid Spending per Enrollee by State, Federal FY 2016

Health Coverage

  • The percentage of the population without health insurance in New York was halved from 11.9 percent in 2010 to 5.7 percent in 2017, a trend that was in line with the nation as a whole. In 2017 New York ranked 14th in share of residents insured. The percentage of the population uninsured decreased in every state from 2010 to 2017, propelled by implementation of the ACA starting in 2014.
Figure 17: Percentage of Population without Health Insurance, N.Y. and National Average,Minimum and Maximum, 2010 to 2017
  • As part of implementation of the ACA, New York–along with 11 other states and the District of Columbia–elected to operate its own exchange rather than use the platform launched by the U.S. Department of Health and Human Services.16 The exchange, New York State of Health (NYSOH), allows New Yorkers to determine their eligibility for insurance plans and shop for plans that meet the coverage mandate included in the ACA. Enrolling in coverage through NYSoH is an increasingly popular option for New Yorkers, with 4.3 million residents enrolling via the exchange in 2018. Most (77 percent) used NYSoH to enroll in publicly funded coverage of Medicaid or the Children’s Health Insurance Program (CHIP). Remaining enrollees purchased the Essential Plan, a federally subsidized option for those with incomes slightly greater than Medicaid eligibility, or qualifying plans from private insurers.
Figure 18: Health Insurance Enrollment through NYSOH by Plan Type, 2014 to 2018

Education

Elementary and Secondary Education

  • Between school year 2010-2011 and school year 2018-2019, state school aid is projected to grow 26.9 percent from $20.9 billion to $26.6 billion.
  • Per pupil, New York spends almost twice as much as the national average—$22,366 versus $11,762 in school year 2016. Per pupil spending grew more than 50 percent faster than the national average between school year 2011 and 2016, 17.2 percent versus 11.4 percent.
Figure 19: N.Y. & National Spending Per Pupil, SY 2011-2012 to SY 2016-2017
  • Despite the increase in spending between school year 2010-2011 and 2016-2017, New York’s rank on grade 8 reading was unchanged at 35, while the math rank improved from 30 to 25.17 Between school year 2010-2011 and school year 2015-2016, New York’s graduation rate increased from 77 percent to 80.4 percent, but New York’s graduation rate rank fell from 30 to 38. The national graduation rate increased from 79 percent to 84.1 percent during this period.18

Higher Education

State support for the State University of New York (SUNY) and the City University of New York (CUNY) significantly exceeds the national average: $10,130 per full-time equivalent (FTE) student versus $7,120. State subsidies increased 7 percent in New York during the 10 years prior to school year 2015-2016 while declining 11 percent nationally.

Table 5: Change in State & Local Subsidies to Higher Education, N.Y. and National Average, 2006 to 2016
  • SUNY and CUNY tuition rates increased approximately 40 percent between school years 2010-2011 and 2018-2019. In 2011 the State enacted a new tuition policy allowing annual tuition increases up to $300 to improve predictability and to increase resources available to public institutions. As part of this agreement, the State agreed to maintain its level of support. The rational tuition plan was extended in 2016, but the annual increases were lowered to $200.
Table 6: SUNY & CUNY Undergraduate Annual Tuition Rates, SY 2010-2011 to SY 2018-2019
  • Despite tuition increases, the cost to students (tuition and fees) of attending public institutions in New York is still much lower than the national average. In academic year 2017-2018 annual tuition and fees at four-year public colleges and universities in New York was $7,940 compared to a national average of $9,970.19
Table 7: Costs of Attending 4-year Public Colleges and Universities,N.Y. and National Average, SY  2012-2013 to 2017-2018
  • Public higher education enrollment in four-year schools in New York has been flat since school year 2010-2011, and two-year college enrollment has declined; both trends are similar to national enrollment over this period.20
Table 8: State and National Enrollment Trends in Public Higher Education, SY 2012-2013 to SY 2017-2018

Infrastructure

Roads and Bridges

New York’s bridges continue to be in worse condition than the rest of the nation. Approximately 11 percent of the deck area on New York’s 17,456 bridges is rated as poor compared to 6 percent nationwide. The number of structurally deficient bridges–a designation given to bridges in need of repairs–owned by the State and its authorities decreased to 667 from 750.21

Figure 20: Percentage of Bridge Deck Area Rated as Poor, N.Y. and U.S., 2012 through 2017
  • Road conditions on State-owned roads have marginally improved. Sixty-four percent of road surfaces were rated “good” or “excellent” in 2016 compared to 60 percent in 2011.
Figure 21: Condition of N.Y. Road Surfaces, 2011 through 2016

Metropolitan Transportation Authority

On-time performance of the MTA’s two major commuter railroads, the Long Island Rail Road (LIRR) and Metro-North Railroad (MNR), remained between 91 percent and 97 percent throughout the 2010 to 2017 period. On-time performance of the MTA's subways decreased significantly from 2010 through 2017, declining from 89 percent to 63 percent.

Figure 22: On-time Performance by MTA Rail System, 2010 through 2017

Crime and Corrections

  • New York’s violent crime rate is on par with national rates, but property crime is about two-thirds of the national rates: 1,604 incidents per 100,000 residents compared to 2,487 nationally. Property crime rates have also decreased more quickly, by 18 percent between 2010 and 2015 compared to 15 percent nationally.22
Figure 23: Uniform Crime Rates, Incidence of Property Crime and Violent Crime, 2010 through 2015
  • The prison population in New York State prisons has decreased at a faster rate (8.5 percent) than the nation (4.8 percent), but at a slower rate than in federal prisons.23
Figure 24: Change in Prison Population, N.Y., U.S., and Federal Prisons, 2011 to 2016
  • As the census of the prison population has declined steadily, the ratio of inmates to correction officers (COs) in Department of Corrections and Community Supervision (DOCCS) facilities has decreased from 2.9 inmates per CO to 2.5 inmates per CO between 2011 and 2018. The number of inmates has declined from 55,980 to 48,851 in this period.
Figure 25: Census of Inmates in N.Y. Prisons

Staffing ratios reflect both the number and the type of inmates. While the number of prisoners has declined, the prison population has a greater proportion of inmates incarcerated for violent felonies. This can be attributed in part to the repeal of Rockefeller Drug Laws in 2009. In recent years the count of assaults on staff by inmates has increased, rising from 645 in 2013 to 798 in 2017, a majority of which are reported at maximum security facilities.24

Figure 26: Violent Felons as a Share of Total Inmates in Medium and Maximum SecurityN.Y. Prisons, Selected Years

Energy and Environment

  • Total carbon dioxide emissions decreased 3.6 percent in New York since 2010.  New York’s emissions are approximately half of national emissions as measured by gross domestic product or per capita.24
Table 9: N.Y. & U.S. Total Carbon Emissions from All Sectors, 2010 to 2015
  • New York’s electrical sector is less polluting than the nation overall, and emissions have been decreasing since 2010, with nitrous oxide (NOx), sulfur dioxide (SO2), and carbon dioxide (CO2) emissions all lower in New York than in the nation.  The national and state declines are both largely the result of shifting reliance from coal to natural gas for electrical production resulting from declines in costs.  On a per capita basis, New York releases much less of all three pollutants, and emissions have declined over the period.  National emissions have declined at a slightly faster pace for NOx , whereas emissions of SO2 and CO2 have declined faster in New York on an aggregate and per capita basis. CO2 emissions have decreased faster in the electrical sector than overall–decreasing 26.4 percent in the electrical sector between 2010 and 2016, compared to only 3.6 percent in all sectors combined.26
Figure 27: Per Capita Emissions From Electrical Sector, N.Y. and U.S., 2016
Figure 28: Change in Electricity Sector Emissions, N.Y. and U.S., 2010 to 2016
  • Rates have also declined. Since 2010 electric rates in New York have declined in residential, commercial, and industrial sectors. In contrast, national rates have increased during the same period. However, only industrial rates are lower in New York than the rest of the nation.
Table 10: Cents Per Kilowatt Hour Total Electric Industry Rates, N.Y. and U.S., 2010 & 2016

Appendix A – Sources for New York State Economic Development Spending

Agriculture and New York State Horse Breeding Development Fund, Management’s Discussion and Analysis and Financial Statements (December 31, 2017), www.abo.ny.gov/annualreports/PARISAuditReports/FYE2017/State/AgricultureandNewYorkStateHorseBreedingDevelopmentFund2017.pdf, and 20112016 editions.

Development Authority of the North Country, Financial Statements as of March 31, 2018 (March 31, 2018), www.abo.ny.gov/annualreports/PARISAuditReports/FYE2018/State/DevelopmentAuthorityoftheNorthCountry2018.pdf, and 2012 through 2017 editions.

Empire State Development, Commercial Production Tax Credit Annual Report: Calendar Year 2016 (February 23, 2018), https://esd.ny.gov/sites/default/files/Commercial-Production-Credit-2016-Annual-Report.pdf, and 2015 edition.

Empire State Development, Excelsior Jobs Program Quarterly Report (March 31, 2018), https://esd.ny.gov/esd-media-center/reports/excelsior-jobs-program-quarterly-report-3312018.

Empire State Development, “Empire State Jobs Retention Program Quarterly Report, Chart B: Credits Issued” (December 31, 2017), https://esd.ny.gov/sites/default/files/Retention%20ChartB_CreditsIssued_12.31.17.pdf.

Empire State Development, Film Tax Credit 2017 Quarterly Reports (December 31, 2017), https://esd.ny.gov/esd-media-center/reports/film-tax-credit-2017-quarterly-reports, and 2015 through 2016 editions.

New York State Division of the Budget, Open Data NY, “Empire Zones Business Annual Reports: Beginning 2001” (accessed September 2018, updated August 7, 2018), https://data.ny.gov/Economic-Development/Empire-Zones-Business-Annual-Reports-Beginning-200/edtu-bdbi/data.

Empire State Development, START-UP NY 2016 Report (April 3, 2017), pp. 39-42, https://esd.ny.gov/sites/default/files/2016-START-UP-NY-Report.pdf, and 2014 edition.

Empire State Development, “START-UP NY Businesses Located in Tax-Free Areas” (July 1, 2016), https://cdn.esd.ny.gov/Reports/STARTUPNYReport-ParticipatingBusinesses2015.pdf.

Hudson River Park Trust, Management’s Discussion and Analysis, Financial Statements and Supplemental Information (March 31, 2018), www.abo.ny.gov/annualreports/PARISAuditReports/FYE2018/State/HudsonRiverParkTrust2018.pdf, and 2012 through 2017 editions.

New York Power Authority, Financial Report: December 31, 2017 and 2016 (December 31, 2017), www.abo.ny.gov/annualreports/PARISAuditReports/FYE2017/State/PowerAuthorityoftheStateofNewYork2017.pdf, and 2011 through 2016 editions.

New York State Department of Taxation and Finance,  Open Data NY, “Brownfield Redevelopment Credit: Beginning Calendar Year 2005” (updated January 30, 2018), https://data.ny.gov/Government-Finance/Brownfield-Redevelopment-Credit-Beginning-Calendar/vud8-75x8, and “Brownfield Real Property Tax Credit and Environmental Remediated Insurance Credit: Beginning Calendar Year 2005” (updated January 30, 2018), https://data.ny.gov/Government-Finance/Brownfield-Real-Property-Tax-Credit-and-Environmen/635g-4qx7.

New York State Department of Taxation and Finance, Open Data NY, “Excelsior Jobs Program Tax Credit: Beginning Calendar Year 2012,” https://data.ny.gov/Government-Finance/Excelsior-Jobs-Program-Tax-Credit-Beginning-Calend/huva-pmc4/data.

New York State Division of the Budget, FY 2019 Annual Report on New York State Tax Expenditures (2018), pp. 93-97, 163-167, www.budget.ny.gov/pubs/archive/fy19/exec/fy19ter/taxexpendfy19.pdf; fiscal year 2018 edition, pp. 93-97, 163-167;  fiscal year 2017 edition, pp. 93-97, 163-167; fiscal year 2016 edition, pp. 87-91, 154-158.

New York State Division of the Budget, Open Budget, “Empire State Development Corporation Estimated Spending” (accessed July 18, 2018), https://openbudget.ny.gov/spendingForm.html.

New York State Energy Research and Development Authority, Financial Statements (March 31, 2018), www.abo.ny.gov/annualreports/PARISAuditReports/FYE2018/State/NewYorkStateEnergyResearchandDevelopmentAuthority2018.pdf, and 2012 through 2017 editions.

New York State Olympic Regional Development Authority, Financial Statements as of March 31, 2018 and 2017 (March 31, 2018), www.abo.ny.gov/annualreports/PARISAuditReports/FYE2018/State/NewYorkStateOlympicRegionalDevelopmentAuthority2018.pdf, and 2012 through 2018 editions.

New York State Thoroughbred Breeding and Development Fund Corporation, Financial Report (December 31, 2017), www.abo.ny.gov/annualreports/PARISAuditReports/FYE2017/State/NewYorkStateThoroughbredBreedingDevelopmentFund2017.pdf, and 2011 and 2016 editions.

Office of the New York State Comptroller, “Open Book New York: State Agency Spending Search” (accessed July 9, 2018), http://wwe2.osc.state.ny.us/transparency/spending/spndReport.cfm#spndng.

Footnotes

  1. Little data is available to monitor and evaluate the effectiveness of these expenditures. Prior research indicates many programs are poorly designed; offer excessive benefits; or support industries or firms that do not need it. See: Riley Edwards, A Blueprint for Economic Development Reform (Citizens Budget Commission, March 13, 2017), https://cbcny.org/research/blueprint-economic-development-reform ; and Riley Edwards and David Friedfel, Increasing Without Evidence: NYS Economic Development Spending Update (Citizens Budget Commission, September 26, 2016), https://cbcny.org/research/increasing-without-evidence.
  2. David Friedfel, “State Budget Cap Has Lost Its Meaning” (May 29, 2018), Citizens Budget Commission Blog, https://cbcny.org/research/state-budget-cap-has-lost-its-meaning.
  3. Federal Reserve Board of St. Louis, “State Government Current Expenditures” (updated October 27, 2017), https://fred.stlouisfed.org/series/W751RC1A027NBEA.
  4. These figures reflect “on-budget” capital expenses. The FY 2019 Adopted Budget Capital Plan includes $672 million in additional “off-budget” capital spending. New York State Division of the Budget, FY 2019 Enacted Capital Program and Financing Plan (May 2018), p. 22, www.budget.ny.gov/pubs/archive/fy19/enac/fy19enacCP.pdf.
  5. Office of the New York State Comptroller, Debt Impact Study; An Analysis of New York State's Debt Burden  (December 2017), www.osc.state.ny.us/reports/debt/debt-impact-study-2017.pdf.
  6. Mercatus Center, State Fiscal Rankings, www.mercatus.org/statefiscalrankings.
  7. CBC staff analysis of data from Bureau of Labor Statistics, “CPI-Urban All Consumers Medical Care in U.S. City Average: All Urban Consumers,” (accessed September 2018), https://data.bls.gov/timeseries/CUUR0000SAM?output_view=pct_12mths.
  8. Maria Doulis, Everybody’s Doing It: Health Insurance Premium-Sharing by Employees and Retirees in the  Public and Private Sectors (Citizens Budget Commission, January 2013), p. 11, https://cbcny.org/sites/default/files/REPORT_HIS_01282013.pdf.
  9. For a description of the plans, see: Office of the New York State Comptroller, New York State and Local Retirement System, 2017 Comprehensive Annual Financial Report (September 30, 2017),  pp. 42-46,  www.osc.state.ny.us/retire/word_and_pdf_documents/publications/cafr/cafr_17.pdf.
  10. Office of the New York State Comptroller, New York State and Local Retirement System, 2017 Comprehensive Annual Financial Report (September 30, 2017), p. 177, www.osc.state.ny.us/retire/word_and_pdf_documents/publications/cafr/cafr_17.pdf.
  11. Since 2011 New York has continually ranked in the top eight of all state retirement systems and was fourth in the most recent rankings (fiscal year 2016). See: Pew Charitable Trusts, State Pension Funding Gap (2016), www.pewtrusts.org/en/research-and-analysis/articles/2017/04/state-pension-funding-gap, and 2011 through 2015 editions.
  12. Since 2011 New York has continually ranked in the top eight of all state retirement systems and was fourth in the most recent rankings (fiscal year 2016). See: Pew Charitable Trusts, State Pension Funding Gap(2016), www.pewtrusts.org/en/research-and-analysis/articles/2017/04/state-pension-funding-gap, and 2011 through 2015 editions
  13. New York State Division of the Budget, FY 2019 Economic and Revenue Outlook (January 2018), p. 140, www.budget.ny.gov/pubs/archive/fy19/exec/fy19ero/economicRevenueOutlook.pdf.
  14. Nationwide Medicaid enrollment also increased by 35 percent from federal fiscal year 2011 to federal fiscal year 2016.
  15. New York State Department of Health, “Redesigning New York’s Medicaid Program” (accessed August 2018), www.health.ny.gov/health_care/medicaid/redesign/.
  16. U.S. Department of Health and Human Services, “The Marketplace in your state” (accessed September 20, 2018), www.healthcare.gov/marketplace-in-your-state/.
  17. Rank is based on average of grade 4 and grade 8 Reading and Math National Assessment of Educational Progress (NAEP) assessments available from the U.S. Department of Education. See:  National Assessment of Educational Progress , “New York State Comparisons: Grade 8 Mathematics and Reading Assessments”  www.nationsreportcard.gov/profiles/stateprofile/overview/NY?cti=PgTab_ScoreComparisons&chort=2&sub=MAT&sj=NY&fs=Grade&st=MN&year=2017R3&sg=Gender%3A+Male+vs.+Female&sgv=Difference&ts=Single+Year&tss=2015R3-2017R3&sfj=NP, and 2011 through 2016 editions.
  18. U.S. Department of Education, “Graduation Rate Data” (accessed September 27, 2018), https://eddataexpress.ed.gov/index.cfm.
  19. College Board, Trends in Higher Education: 2017-18 Tuition and Fees at Public Four-Year Institutions by State and Five-Year Percentage Change in In-State Tuition and Fees, https://trends.collegeboard.org/college-pricing/figures-tables/2017-18-state-tuition-and-fees-public-four-year-institutions-state-and-five-year-percentage.
  20. It is too early to tell how the Excelsior College Scholarship, which launched in academic year 2017-2018 and provides free college tuition to SUNY and CUNY full-time students subject to income and other limitations, will impact enrollment at SUNY or CUNY.
  21. Structural deficiency is a designation assigned to bridges with the lowest physical condition ratings based on evaluations of the deck, superstructures, substructures, and surrounding structural elements. See: U.S. Department of Transportation, “Additional Guidance on 23 CFR 650 D” (June 27, 2017), www.fhwa.dot.gov/bridge/0650dsup.cfm.
  22. U.S. Department of Justice, Federal Bureau of Investigation, UCR Data Online,https://ucr.fbi.gov/crime-in-the-u.s/2015/crime-in-the-u.s.-2015/tables/table-4, and https://ucr.fbi.gov/crime-in-the-u.s/2015/crime-in-the-u.s.-2015/tables/table-1/tab1overview_final.pdf.
  23. The population in local jails in New York also decreased by a larger percentage than the national total in local jails. New York’s population fell from approximately 29,000 to 25,000 (15 percent) from 2010 to 2016 compared to a national decrease from approximately 749,000 to 741,000 (1 percent) over the same period. See: U.S. Department of Justice, Jail Inmates in 2016 (February 2018), www.bjs.gov/content/pub/pdf/ji16.pdf; and New York State Commission of Correction, “Inmate Population Statistics” (accessed September 28, 2018), www.scoc.ny.gov/pop.htm.
  24. New York State Department of Corrections and Community Supervision, DOCCS Fact Sheet (September 1, 2018), p. 1, www.doccs.ny.gov/FactSheets/PDF/currentfactsheet.pdf.
  25. U.S. Energy Information Administration, “State Carbon Dioxide Emissions Data” (October 2017), https://www.eia.gov/environment/emissions/state/; and U.S. Census Bureau, “Mid-Year Estimates: 2010-2015,” https://factfinder.census.gov/; and Bureau of Economic Analysis, “Annual Gross Domestic Data by State” https://apps.bea.gov/itable/iTable.cfm?ReqID=70&step=1#reqid=70&step=1&isuri=1.
  26. U.S. Energy Information Administration, “U.S. Electric Power Industry Estimated Emissions by State” (November 2017), www.eia.gov/electricity/data/state/, and “U.S. Electric Power Industry Estimated Emissions by State” (November 2017), www.eia.gov/electricity/data/state/.