New York’s New York’s NumbersNumbers

Why Taxpayers and Why Taxpayers and Businesses Need to Get Businesses Need to Get

Engaged Now! Engaged Now!

Fiscal RealityFiscal Reality

$2,200,000,000$2,200,000,000Projected shortfall after the Projected shortfall after the

budget was passedbudget was passed

$3,100,000,000$3,100,000,000Projected deficit in JulyProjected deficit in July

$4,100,000,000$4,100,000,000Current projected deficit by Current projected deficit by

Comptroller DiNapoliComptroller DiNapoli

$7,000,000,000$7,000,000,000Federal stimulus $$$ used this Federal stimulus $$$ used this

year to offset spending year to offset spending increasesincreases

$8,000,000,000$8,000,000,000New taxes and fees in the New taxes and fees in the recently enacted budget to recently enacted budget to

offset spendingoffset spending

$11,000,000,000$11,000,000,000Projected budget deficit next yearProjected budget deficit next year

$38,000,000,000$38,000,000,000Projected deficit over the next 3 Projected deficit over the next 3

yearsyears

$149,000,000,000$149,000,000,000Projected state budget for 2012-13Projected state budget for 2012-13

Realistic TrendsRealistic Trends

For a quarter century New York State spending has been growing steadily

New York State Operating Fund Disbursements, New York State Personal Income and U.S. Consumer Price Index , 1984-2009(indexed, 1985 =100)

Sources: State of New York, Office of State Comptroller, United States Department of Labor, Bureau of Labor Statistics, Consumer Price Index, All Urban Consumers (CPI – U), United States Department of Commerce, Bureau of Economic Analysis, Regional Economic Accounts, State Annual Personal Income

State Funds Disbursements

U.S. CPI

NYS Personal Income

0

100

200

300

400

1985 2009

Avg. Annual Growth 5.4%

Avg. Annual Growth 2.9%

Avg. Annual Growth 4.8%

67% of the budget goes to school aid, 67% of the budget goes to school aid, Medicaid, and employee salaries and benefitsMedicaid, and employee salaries and benefits

New York State Operating Spending by Major Category $78.2 B Fiscal Year 2008-09 Cash Disbursements

Source: New York State Division of Budget, Fiscal Year 2009-10 Financial Plan, First Quarter Update, July 30, 2009

Medicaid ($12.6B)

=16%

School Aid ($25.1B)

=32%

Debt Service ($4.5B)

Other ($2.1B)

Contracts, Supplies and Other Non-

Personal Services ($4.9B)

Local Aid for Health, Mental Health,

Social Services, Higher Education

and Transportation($14.

1B)

State Employee Salaries, Wages

and Benefits ($14.7B)

=19%

Personal Income, Sales / Use, and Business Personal Income, Sales / Use, and Business Income Taxes equal 75% of the baseIncome Taxes equal 75% of the base

State Operating Revenues by Major Category $75.2B Fiscal Year 2008-09 Cash Receipts

Source: New York State Division of Budget, Fiscal Year 2009-10 Financial Plan, First Quarter Update, July 30, 2009

New York State Division of Budget, Fiscal Year 2009-10 Financial Plan, First Quarter Update, July 30, 2009

Misc. Receipts ($16.9B)

Other Taxes ($1.6B)

Business Taxes

($7.0B)=9%

User Taxes and Fees ($12.8B)

=17%

Personal Income Tax

($36.8B)=49%

Big taxes are shrinking – Down by 23% from Big taxes are shrinking – Down by 23% from last year and 8% from the original enacted last year and 8% from the original enacted

budget projection for this yearbudget projection for this year

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

$16,000

$18,000

Actual 2008-09 Budget 2009-10 Actual 2009-10

$ m

illi

on

s

UserTaxes

BusinessTaxes

PersonalIncomeTax

General Fund Tax Collections for Three Major Taxes* April to August - Last Year Compared to this Year

Down 23%

Source: New York State Comptroller and New York State Division of Budget

Notes:*Personal Income Tax adjusted for State-City offset payments

$17.0B

$13.1B

How Can We Reverse the Trend?How Can We Reverse the Trend?

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