ALBANY- New York’s enacted $277 billion budget for the 2026-27 fiscal year has grown by 7 percent over last year, but State Comptroller Tom DiNapoli is warning that the increased spending raises questions about the state’s long-term fiscal stability.
In a report released this week, DiNapoli said state spending continues to outpace revenues, with projected budget gaps totaling $31.8 billion over the next several years. At the same time, the state has not increased its roughly $15 billion in reserves, despite the larger budget, and plans to use $1.3 billion from its General Fund balance to help close the current budget.
“The state’s finances remain highly exposed to federal actions and potential economic downturns,” DiNapoli said, noting that rising costs for Medicaid, education and child care, combined with uncertainty over future federal funding, could put the state’s finances under increasing pressure.
The comptroller also expressed concern that flat reserve levels and growing structural budget imbalances could limit New York’s ability to respond to future economic challenges.
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