Last week New York’s Democratic Comptroller Tom DiNapoli reported the state’s personal income tax receipts continue to decline – with a shocking 50% decline in income tax collections last month from a year ago. This reduction is in part fueled by the flight of the state’s people and capital to red states.
Even worse, this spring the state legislature went on a spending spree. New York now spends more money on public education than any other state and is 85 percent above the national average. Overall, state spending has gone up a staggering 25 percent since the 2019 to 2020 fiscal year, thanks to “free” federal money.
DiNapoli’s report warns “that much of the increased spending is recurring and may present a growing fiscal challenge to the state, particularly as temporary federal aid wanes and if a more pronounced or extended economic downturn occurs.”
Here is our prediction: NY’s hapless Governor Kathy Hochul is going to come running to Washington for a budget bailout. We hope congressional Republicans will respond: Drop Dead!