New York’s budget basics
According to the National Association of State Budget Officers (NASBO), New York’s total expenditures in fiscal year (FY) 2022 were $209.3 billion, including general funds, other state funds, bonds, and federal funds. NASBO reported that total expenditures across all states in FY 2022 were $2.9 trillion, ranging from $5.6 billion in Wyoming to $510.0 billion in California.
Each state allocates spending and taxes differently among different levels of governments, and local governments often administer programs with state funds, so combined state and local government data show a more complete picture of individual benefits and contributions when comparing states.
Per the US Census Bureau, New York’s combined state and local direct general expenditures were $315.7 billion in FY 2021 (the most recent year census data were available), or $15,899 per capita. (Census data exclude “business-like” activities such as utilities and transfers between state and local governments.) National per capita direct general expenditures were $11,087.
(Note: We cite data from both NASBO and Census to provide a broader picture of each state’s fiscal situation. However, these sources detail spending from different levels of government in different years, and the COVID-19 pandemic and the federal government’s response to it significantly affected these totals in different ways in different years. Please only use one source if you are looking for historical comparisons.)
New York’s largest spending areas per capita were public welfare ($4,249) and elementary and secondary education ($3,817). The Census Bureau includes most Medicaid spending in public welfare but also allocates some of it to public hospitals. Per capita spending is useful for state comparisons but is an incomplete metric because it doesn’t provide any information about a state’s demographics, policy decisions, administrative procedures, or residents’ choices.
New York’s combined state and local general revenues were $356.4 billion in FY 2021, or $17,950 per capita. National per capita general revenues were $12,277. New York uses all major state and local taxes. After federal transfers, New York’s largest sources of per capita revenue were individual income taxes ($3,556) and property taxes ($3,343).
New York’s politics
Governor Kathy Hochul, a Democrat, was elected in 2022 with 53 percent of the vote. The next gubernatorial election is in 2026.
Democrats control both the Assembly (102 Democrats to 48 Republicans) and Senate (42 Democrats to 21 Republicans), with veto-proof majorities in both houses. Control of the governor’s mansion and each house of the legislature gives Democrats a trifecta in New York. The entire legislature is up for election in 2024 because both members and senators serve two-year terms.
New York’s budget institutions, rules, and constraints
New York uses an annual budget. The legislature must pass a balanced budget, but it can carry a deficit over into the following year. There are no further tax and expenditure limits in New York. There are limits on total authorized debt and debt service incurred by the state.
(Note: Some states have informal budget institutions that constrain overall spending growth or a specific expenditure’s growth.)
New York’s current budget
New York enacted its FY 2023 budget in April 2022. The enacted budget included $220 billion in total spending and $122.7 billion in state operating spending. (New York’s general fund includes spending that NASBO categorizes as “other state funds,” so the historical totals reported below are lower. See NASBO’s report for more detail.)
Under the American Rescue Plan, New York will receive $12.7 billion in direct state fiscal aid and $9.9 billion in local government aid from the federal government. As of January 2022, New York had spent part of its ARP funds on revenue replacement.
According to NASBO, New York’s recent expenditure totals (general fund spending/total spending, including federal transfers) were:
- FY 2022: $79.1 billion/$209.3 billion
- FY 2021: $66.1 billion/$186.6 billion
- FY 2020: $71.4 billion/$173.0 billion
- FY 2019: $72.8 billion/$170.9 billion
For more on New York’s budget, see
New York’s economic trends
New York’s per capita income (per the Bureau of Economic Analysis) was $78,089 in 2022, ranking fourth among the states. It was above both the national average of $65,423 and the Mideast regional average of $71,946. The state’s median household income (five-year estimate) was $75,157 in 2021, ranking 14th among the states and above the national average of $69,021. New York’s poverty rate was 13.5 percent in 2021 (five-year estimate), above the national rate of 12.6 percent.
Although New York’s averages tell a story about the entire state, New York is composed of diverse localities. For example, the city of Jamestown’s median household income was $36,162, and its poverty rate was 28.1 percent; the city of Garden City’s median household income was $185,188, and its poverty rate was 2.5 percent.
New York’s unemployment rate historically tracks the national average.
Unemployment rates (like other economic indicators) often vary significantly by race and ethnicity. In New York, the average unemployment rate in 2022 was 3.5 percent for white residents, 8.7 percent for Black residents, and 6 percent for Hispanic or Latino residents.