New York State Division of the Budget Announces Release of the FY 2021 First Quarterly State Budget Financial Plan Update

The New York State Division of the Budget announced today the release of the FY 2021 First Quarterly State Budget Financial Plan Update (PDF), which projects a $14.5 billion General Fund revenue decline and a 15.3% All Funds tax receipts decline from the Budget forecast released in February, creating a total loss of $62 billion through FY 2024 as a direct consequence of the COVID-19 pandemic. The $14.5 billion projected revenue decline for FY 2021 represents a $1.2 billion decline from revenue estimates made in April in the Enacted Budget Financial Plan.

In the absence of Federal funding to offset this revenue loss, the Financial plan shows the State reduced spending through June by nearly $4 billion compared to FY 2020 spending over the same period. The State has done this by freezing hiring, new contracts and pay raises, and temporarily holding back 20% of payments.

“New York has so far safely re-opened large portions of the economy after curbing the spread of COVID-19, and while we remain vigilant to sustain our re-opening, the pandemic has done more damage to our economy than the Great Recession and is driving a fiscal crisis,” said Robert Mujica, New York State Budget Director. “The Federal government must put an end to its months of dithering and deliver funding to states because if they don’t the temporary withholdings turn into permanent reductions, which would have devastating impacts on schools, hospitals, police and fire departments, along with other critical services, and weaken New York State’s ability to lead the national economic recovery as the producer of nearly 10% of national GDP.”

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